Choosing the right inventory rotation method directly determines your store's profitability, waste percentage, and customer satisfaction. The three primary methods used in logistics and retail are FEFO, FIFO, and LIFO.
Comparison Table: FEFO vs. FIFO vs. LIFO
| Method | Stands For | Primary Selection Criteria | Best Suited For | Risk of Expiry Losses |
|---|---|---|---|---|
| FEFO | First-Expired, First-Out | Nearest Expiration Date | Perishable Foods, Medicines, Dairy | Lowest (0–2%) |
| FIFO | First-In, First-Out | Earliest Arrival Date | Non-Perishables, Packaged Snacks | Moderate |
| LIFO | Last-In, First-Out | Latest Arrival Date | Bulk Minerals, Non-Perishable Hardware | High for Perishables |
When to Use FEFO
FEFO is mandatory for food retail, grocery stores, and pharmacies. As explained in our FEFO Inventory Management Guide, FEFO prioritizes expiration dates over arrival dates, protecting profit margins from unpredictable supplier delivery schedules.
When to Use FIFO
FIFO is ideal for general retail, apparel, and warehousing non-perishables. Learn how to implement FIFO in warehouse environments with our FIFO Warehousing Guide.
Calculate Your Stock Shelf Life Today
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