What is FIFO, FEFO and LIFO? - Safe Food handling procedures.

 

Here's a brief overview of FIFO, FEFO, and LIFO inventory management methods:

1. FIFO (First-In, First-Out):

- Oldest items are sold or used first.

- Items are placed at the front of the storage area or shelf in the order they're received.

- Benefits: Reduces risk of expired or obsolete inventory, minimises waste, and easier to implement.

2. FEFO (First-Expired, First-Out):

- Items with the earliest expiration dates are sold or used first.

- Items are prioritised based on their expiration dates.

- Benefits: Reduces waste, ensures timely use of perishable items, and maintains product freshness.

3. LIFO (Last-In, First-Out):

- Newest items are sold or used first.

- Items are placed at the front of the storage area or shelf in the reverse order they're received.

- Benefits: Can be beneficial for items with increasing prices or for tax benefits (in some regions).

When to use each method:

- FIFO: Non-perishable items, stable prices, and simple inventory management.

- FEFO: Perishable items, like food, pharmaceuticals, or cosmetics, where expiration dates matter.

- LIFO: Items with increasing prices, tax benefits, or for specific accounting purposes.

Remember, the choice of method depends on your business needs, inventory type, and industry requirements.

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