FIFO vs FEFO vs LIFO

Warehouse is the most important location for a business. The optimization of your warehouse and regulating the flow of goods is the key of smooth flow of your business as well. It might not have struck you so often, but think over it. If you have a business that totally depends on how efficiently and how rapidly your products are delivered to your customers.

FIFO (First In First Out):
A First In First Out strategy implies that the products that were stocked first will move out first. Companies should use FIFO method if they are selling perishable goods. Companies selling products with relatively short demand cycles, such as clothes, also may have to pick FIFO to ensure they are not stuck with outdated styles in inventory.
FIFO strategy is used during picking, the material lying on top must be moved so that the warehouse worker can reach the material with the oldest goods receipt date.

FEFO (First Expired First Out):
FEFO, First Expired, First-Out, is similar to FIFO in that items closest to the expiration will be shipped first. The “E” refers to the expiration date of the product.

LIFO (Last In First Out):
The LIFO strategy is provided for such situations. When the system searches for a quant to remove from stock, it always selects the last quant that was placed into stock.