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FIFO method is very important in maximum industries , FIFO is meant for FIRST IN FIRST OUT.
To Avoid the loss in inventory due to expiry or due to old stocking we should use FIFO.
If FIFO is not followed, in this case the chances of losing money and clients are higher as no clients would like to buy an expired or stale product, and even if they do, you would be at a greater loss than your customer as you would lose a valuable customer.
The best technique to implement this method is using WMS barcoding system and making the stock stacking as per batch numbers or stacking the stock as per date of received
(i.e received stocks on previous dates should be on top or first to pick)
In a warehouse a material which entered first should be issued first.The importance of this method is that it allows old material to be issued firstly so that they could be used before their expiry.
Batch numbers or material receiving date can be used for implementing this methodology in your warehouse.
This method adds value in terms of minimizing the wastage. In a nutshell, materials which comes in store first should move out first and maintaining chronological order.
The FIFO goes to help in warehousing its shows the item which will going to expire its goes out first at the same IIFO goes last in first out....
