FIFO (First In, First Out), LIFO (Last In, First Out) and FEFO (First Expired, First Out) are three methods for managing stock outflows. FIFO sends out the first products that entered first, LIFO does the opposite, and FEFO prioritizes products with the nearest expiry date.
Three logics, three uses
FIFO is the most widespread method: it limits product obsolescence and suits the majority of storage flows. Physically, it can take the form, for example, of dynamic racking where pallets advance by gravity along sloped rails, or of drive-through racking, accessible from both ends.
LIFO is the reverse: the last load in is the first out. Physically, this is how a classic drive-in rack naturally works, accessible from a single side, where it is impossible to reach a pallet without moving the ones that arrived after it. LIFO is poorly suited to perishable products, but remains relevant for homogeneous stock where the order of outflow has no quality impact (non-sensitive raw materials, certain buffer stocks).
FEFO addresses a different constraint: it is not based on the date a product entered stock, but on the product's use-by or best-before date. This is the reference method in the food and pharma industries, where a product received more recently can have an earlier expiry date than a batch that arrived before it (depending on manufacturing date or production conditions). FEFO requires precise batch-level date tracking, generally managed by the WMS, and takes precedence over FIFO whenever expiry dates do not strictly follow the order of arrival.
FAQ
What is the difference between FIFO and FEFO?
FIFO sends out first whichever products entered stock first. FEFO sends out first whichever products have the nearest expiry date, regardless of when they entered stock. FEFO is the reference method for perishable products with variable expiry dates.
Is LIFO compatible with perishable products?
Generally not: LIFO sends out last whichever products entered first, which can cause them to pass their expiry date. It is better suited to non-perishable or slow-moving products, where the order of outflow does not affect product quality.
Related terms
Drive-in racking · Pallet racking · Warehouse / logistics platform · Cross-docking · Anatomy of a pallet rack.
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