What does the FIFO rule stand for?

The FIFO rule stands for "First in, first out," which is a critical principle used in inventory management, especially in the food industry, including restaurants like IHOP. This method ensures that the oldest stock—items that have been in inventory the longest—is used first. By implementing FIFO, establishments can minimize spoilage and waste, ensuring that customers receive fresher products.

This practice is crucial for maintaining food safety and quality, as it helps to prevent serving expired or outdated food to customers. It also supports efficient inventory turnover, keeping the supply chain flowing smoothly and helping to manage costs effectively.

The other options do not accurately reflect the established inventory management practice. They contain phrases that are not recognized as standard terminology in food service or inventory management, making them less relevant to the principles of FIFO.