Question

A microchip supplier has a large shipment of microchips coming in which are the newer model than the ones already in stock. However, the supplier still has several older models on hand. What type of situation is this?
Responses

Cross-docking situation
Cross-docking situation

HIFO situation
HIFO situation

FISH situation
FISH situation

Perpetual inventory situation

Answer 1

This situation resembles a HIFO situation, which stands for "Highest In, First Out." In this context, the supplier has older models on hand and a new shipment of newer models coming in. The expectation is to sell or use the older inventory before the newer inventory, prioritizing the selling out of the older stock to make way for the new stock.

Therefore, the most appropriate response would be:

**HIFO situation**