What should be prioritized in inventory management according to FIFO principles?

Prioritizing the use of older items before newer ones is a fundamental principle of FIFO, which stands for "First In, First Out." This inventory management technique is particularly important in settings like grocery stores, where perishable goods are involved. By ensuring that older inventory is sold or utilized first, businesses can minimize waste and reduce the chances of items expiring before they are sold. This practice helps maintain the freshness of products available to customers, which can enhance customer satisfaction and loyalty.

The other options do not align with FIFO principles. Managing newly received items first would contradict the essence of FIFO, as it would suggest selling newer items before older ones. Storing items for long-term use is generally not recommended for perishable goods, as it increases the risk of spoilage. Discarding expired items is a necessary practice to ensure safety and quality, but it does not pertain to the proactive management of inventory flow that FIFO emphasizes. The focus of FIFO is on the logical, sequential use of inventory to keep stock fresh and reduce waste.