Logistics concept
FIFO and FEFO
Choose an issue method that aligns with the age and shelf life of your stock.
FIFO stands for First In, First Out: inventory received first is issued first. FEFO means First Expired, First Out: inventory with the earliest expiration date takes priority. The distinction is important because the most recently received batch may have a shorter remaining shelf life than an earlier receipt.
In production and logistics, you choose the rule that fits the item and customer requirements. For products with expiration dates, FEFO is often relevant. In doing so, control remains necessary over release, quality, and the minimum remaining shelf life required by the customer. Location layout, identification, and system control must help employees actually pick the right batch.
An appropriate picking order helps reduce aged inventory and unnecessary write-offs. It supports better manageable product quality and prevents usable batches from being left behind unnoticed. The rules only work when receipt dates, expiration dates, and inventory statuses are reliably recorded.
What is FIFO and FEFO?
FIFO issues the oldest received inventory first; FEFO issues inventory with the earliest expiration date first.
When do you use it?
Set up locations and system rules in the correct order, and respect blocks and minimum remaining shelf life.
What are the benefits?
Less obsolescence and write-offs, and better control over product quality upon delivery.