What is FIFO (first in, first out)?
FIFO, first in first out, is a picking rule that ships the oldest received stock first.
Last updated
How FIFO works
Under FIFO, the stock that arrived first leaves first. It stops older stock sitting at the back of a location while newer deliveries ship.
In a WMS, FIFO is a rule for choosing stock. Accounting FIFO is a separate method for valuing inventory and does not decide what gets picked.
Worked example
In this example, item K-40 has one pallet received on 2 January and one received on 15 January. An order for 50 units arrives.
The system allocates from the 2 January pallet. If that pallet holds only 30, the remaining 20 come from the 15 January pallet.
How Waresify handles it
Waresify allocates FIFO by receipt date. With lot tracking on, expiry comes first and FIFO breaks ties. Distance to outbound staging decides between stock received at the same time.
For stock without a lot, the receipt date comes from the LP's first receiving movement in the ledger.
Questions
Is WMS FIFO the same as FIFO inventory valuation?
No. WMS FIFO decides which physical units get picked. FIFO valuation is an accounting method for costing stock, set in your ERP.
Does FIFO work without lot tracking?
Yes. Waresify uses the receipt date recorded on each LP.