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  • Writer's pictureSedat Onat

Output Prioritization: FIFO - LIFO - FEFO

What is Output Prioritization?

Output prioritization is an output systematic that is decided on a product basis, taking into account constraints such as the product's content, lifespan, and storage system.

The 3 Types of Output Prioritization are detailed below.

FIFO - First In First Out

In this system, which is the most general type of use, the oldest products are sold first. Thus, the risk of deterioration and loss of value is reduced. These products generally need to be stocked regularly.

FIFO - First In First Out

Photo: https:/ /

LIFO - Last In First Out

It is a system that is mostly used in products that do not pose a risk of deterioration or loss of value, such as aggregate, filling material or concrete blocks, due to the nature of the business. Since these types of products are generally stocked on top of each other, FIFO application is almost impossible.

LIFO - Last In First Out

Photo: /sectoral/ready-mixed-concrete-aggregate

FEFO - First Expired First Out

It is an inventory management system used especially in areas where the lifespan of products is of primary importance, such as the food, cosmetics, pharmaceutical and chemical industries. In addition to the stocking order for these types of products, stocking conditions such as temperature and humidity are also of great importance.

FEFO - First Expired First Out

Photo: /pharmaceutical-warehousing

Output Prioritization Systems Comparison: FIFO vs LIFO vs FEFO

Output Prioritization Systems Comparison: FIFO vs LIFO vs FEFO

In addition, an accounting recording system must be created for each exit prioritization (FIFI, LIFO, FEFO). For this reason, it is necessary to be precise in order to enter the records according to this order.


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  4. Lead Time / Delivery Time

  5. Why and How to use the Material Code?

  6. JIT - Just-In-Time

  7. JIC - Just In Case

  8. JIS – Just In Sequence

  9. EOQ - Economic Order Quantity

  10. EOS - Economy of Scale

  11. Economy of Scope

  12. Minimum Stock

  13. Consignment Stock

  14. Safety Stock

  15. StopGap / Temporary Measure

  16. ROP - ReOrder Point / Order Trigger Point

  17. VMI - Vendor Managed Inventory / Supplier Managed Inventory

  18. Bullwhip Effect (Whiplash, Whipsaw)

  19. Beer Game / Beer Distribution Game

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