HIFO is an acronym of the words Highest In, First Out. In practice, just the acronym HIFO 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. Requirements / material are serviced in order, from the most expensive items regardless of date of entry or acquisition. The term HIFO is most often used in logistics and transportation, warehouse management, production logistics or accounting.
Use of the HIFO in practice: