Inventory control of perishable goods needs more attention. Inventory tracking methods help management and accounting in order to control the inventory of perishable goods. Inventory control of perishable goods refers to items that have an expiration date, such as food that must be consumed at a certain time. Usually, single period inventory control and first out first in or FIFO methods are used to control the inventory of perishable goods
Accounting for perishable goods
The most important task in sales planning is trying to balance supply and demand. This is more complicated for businesses such as supermarkets that deal with perishable goods. As a result, various methods have been proposed to manage the inventory of perishable goods. It is very difficult to track the inventory status of perishable goods in a warehouse or store; However, there are methods that help facilitate this
Single period inventory control system
A single period inventory control system assumes that your inventory is only ordered for one period. After the ordered inventory is depleted, you will not stock before reassessing the demand level. For example, if you order 100 cheeses to sell in a two-week period and all of them are sold in the first week, you will wait until the end of the accounting period to order new cheeses. This system limits the amount of inventory that can spoil
Inventory management using the first-out-first-in (FIFO) method
To effectively manage the inventory of perishable goods, it is better to use the FIFO method; It means to respond to the customer’s demand from the stocks that were ordered earlier and have reached us so that we don’t face the spoiling of the previous stocks despite the customers’ orders. For example, if we stack newly-arrived cheeses against older cheeses, the customer will buy the newer cheeses, and the potential result will be that the older cheeses go bad
Source: Pakhshoghab Site
