Why is the 'Stock Rotation' method important?

The importance of the 'Stock Rotation' method lies primarily in its role in ensuring that older stock is sold first, which effectively helps to prevent spoilage and obsolescence. This practice is crucial in inventory management, particularly for products that have a limited shelf life or are subject to becoming outdated. By prioritizing the sale of older items, organizations can minimize waste and financial losses associated with unsold or expired goods. This method not only helps maintain the quality of the products available to customers but also ensures regulatory compliance in industries where spoiled inventory can pose health risks. Thus, stock rotation is an essential strategy for maintaining the integrity of inventory and maximizing profitability.