FEFO is an acronym of the words First Expired, First Out. In practice, usually just the acronym FEFO is used. This is a simple, highly versatile management method, or way of organizing, handling and prioritization of moving of primarily material or other commodities. Material requirements are serviced in the order of items with the earlier date of consumption regardless of the date of entry or acquisition. The term FEFO is most often used in logistics and transportation, warehouse management, inventory flow management and production logistics.
Where to use FEFO in practice?
- Logistics and transportation: products with an earlier date of consumption are shipped first
- FEFO is mainly used in the food industry and where it is necessary to monitor the expiration date or period of durability