The first in, still here term refers to very slow-moving inventory. The acronym (FISH) is a take-off on the FIFO and LIFO acronyms that describe inventory cost layering systems. When a business has a large amount of FISH inventory, this means there is a high risk of obsolete inventory that must be written off. A large amount of FISH also indicates that there is an excessive working capital investment in inventory.
FISH inventory can have many causes, including unexpectedly low sales, excessive inventory purchases, and poor materials management.