What is first expired, first out (FEFO)?
Shipping the products with the earliest expiry date first to reduce losses from expired stock; common in food, pharmaceuticals and similar industries.
In detail
FIFO ships goods by date received; FEFO ships them by expiry date. In most cases the result is the same, but if goods received later actually expire sooner, FEFO prevents them from expiring in the warehouse.
For example
The warehouse holds two batches of milk: batch A arrived first and expires on 30 June; batch B arrived later and expires on 20 June. Under FEFO, batch B should ship first.
How companies use it
Record the expiry date of every batch in the system and have picking rules sort by expiry date; set up near-expiry alerts.
Common misconceptions
The system doesn't record expiry dates, so staff have to check the packaging by hand, which is error-prone.
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