FEFO / FIFO
What is FEFO / FIFO? Rules for which stock goes out first. FEFO (first expired, first out) is for goods that expire; FIFO (first in, first out) is for the rest. Either way, older batches move first.
In plain words
FIFO (first in, first out) ships the oldest stock first. FEFO (first expired, first out) ships the batch that expires first, even if it arrived later. FEFO is for medicines, food, chemicals and anything with a shelf life.
Most warehouses mean to do this already. The trouble is that pickers choose the batch that is nearest, and the older batch is forgotten at the back.
A distributor holds 200 units of a product in two batches, and an order for 150 comes in.
| Batch | Received | Expires | Stock |
|---|---|---|---|
| A | 1 March | 30 June | 200 |
| B | 15 March | 31 May | 200 |
FIFO picks batch A, since it came in first. FEFO picks batch B, because it expires a month earlier. If A is picked, B may expire on the shelf and be written off.
Why it matters
- Write-offs: expired stock is a direct loss, often discovered at the stock count.
- Customers: a customer who receives short-dated goods may reject them or stop ordering.
- Traceability: recalls and audits need to know which batch went to whom.
Want to see FEFO pick a batch from your own stock list? Ask us to try it on a sample.
How Kinnow handles it
In Stock & Ship, the pick list from a delivery order allocates stock lot by lot, either by earliest expiry or by earliest receipt. Items with no expiry date follow receipt order. A pick that spans several lots becomes several lines, and a shortfall is marked short.
When the picker confirms a line, Kinnow checks again whether the lot chosen is still the right one. If not, it records a drift warning, so a supervisor can see the pattern. The warning does not stop the pick. The FEFO/FIFO selector agent is described on its own page; see also right bin, right item.
Limit: it works only when batch and expiry dates are recorded at goods receipt. A missing expiry date makes the lot follow receipt order.
Tell us how many batches an item usually has and we will show how the pick list would look.
Questions
What is FEFO / FIFO?
Rules for which stock goes out first. FEFO (first expired, first out) is for goods that expire; FIFO (first in, first out) is for the rest. Either way, older batches move first.
Should I use FEFO or FIFO?
Use FEFO for goods that expire and FIFO for the rest. If expiry does not matter but cost does, FIFO also keeps your stock valuation in the order goods came in. Your CA confirms the valuation method you use.
What happens if the picker takes the wrong batch?
The pick still confirms, but Kinnow records a warning showing the batch taken and the batch expected. It does not block the pick, so a rush order is not held up. Supervisors use the warnings to fix the cause, such as stale pick lists.