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FEFO stands for First Expired, First Out. It's a method of managing inventory where items with the closest expiration dates are sold or used first, regardless of when they arrived in stock. This method is particularly useful for perishable goods, pharmaceuticals, and other items with a limited shelf life.
Key Differences from FIFO:
While similar to FIFO (First In, First Out), FEFO prioritizes the expiration date over the arrival date. FIFO ensures the oldest items are sold first, whereas FEFO ensures the items expiring soonest are sold first.
Industries that use FEFO:
Food and beverage: To minimize waste and ensure freshness.
Pharmaceuticals: To comply with regulations and ensure product safety.
Cosmetics: To maintain product quality and avoid expired items.
Retail: For products with limited shelf lives.
Benefits of FEFO:
Reduces waste:
By using items with the shortest shelf life first, you minimize the chance of products expiring before they can be sold or used.
Improves product quality: