A warehouse that calculates turnover of inventory requires ensuring that inventory is tracked using the First In First Out (FIFO) methodology. The requirement could be limited to a few items as well. The generates a unique FIFO number upon receipt of such items. The ensures that the oldest inventory is first allocated to orders.
All receipts received within a specified date period are assigned the same FIFO number. An example of FIFO attribute is described in the following table. The example considers the FIFO period as a month.
Location | SKU | FIFO Number | Receipt Date | Quantity |
---|---|---|---|---|
13C01 | SKU1 | 2003011 | 11/15/2003 | 100 |
13C01 | SKU1 | 2003011 | 11/18/2003 | 10 |
13C01 | SKU1 | 2003011 | 11/28/2003 | 50 |
13C02 | SKU1 | 2003012 | 12/10/2003 | 10 |
Industry examples include:
The advantages include: