FIFO
What is FIFO (first in, first out)?
First in, first out (FIFO) means the stock that arrived first is shipped first. It protects perishables and dated goods from aging in place, and it keeps the count reliable by preventing a mix of ages behind one location. In practice FIFO is a physical rule (new stock behind old, never on top of it) as much as a system rule.
How a warehouse actually enforces it
- Layout: flow rack and rear-loading positions make the oldest stock the easiest to reach.
- Location discipline: a replenishment goes to a new location or behind the old stock, never in front.
- System checks: the pick identifies the lot or receipt date, so the wrong age cannot be picked by accident.
- Counts that record age: a count that fixes quantities but loses dates breaks FIFO as surely as a bad layout.
Where FIFO is not enough
Goods with expiry dates want FEFO (first expired, first out), because age and expiry do not always match: a newer batch can expire sooner. Goods with recall risk want lot visibility regardless of order. FIFO is the default discipline for everything else, and it is the rule most often quietly abandoned the day a rush order needs the front pallet.