FEFO inventory method explained
FEFO issues stock with the earliest expiry date first, helping reduce waste and expiry risk.
3 min read · Updated 30 July 2026
Problem
Receipt date alone does not protect products when later deliveries have earlier expiry dates.
Solution
Capture expiry dates at receipt and allocate the earliest eligible expiry before later-dated stock.
What FEFO means
First expired, first out prioritises the stock that will expire soonest, regardless of when it arrived.Required data
Capture batch or lot, expiry date, quantity and location. Reject or quarantine records with missing or invalid dates.Allocation rules
Choose the earliest eligible expiry while respecting customer shelf-life requirements and quality status.Controls
Use expiry alerts, blocked-stock rules and regular short-dated inventory reviews.Frequently asked questions
What does fefo inventory method explained cover?
FEFO issues stock with the earliest expiry date first, helping reduce waste and expiry risk.
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