First In First Out

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.

Table 1. FIFO Attribute
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: