FEFO
Definition
First Expired, First Out: a picking rule that ships the stock with the earliest expiration date first, regardless of when it was received. It is the standard rotation method for perishable and dated goods.
In Practice
FEFO refines FIFO for products where expiry date, not receipt date, determines usability. Because different lots can arrive with different remaining shelf life, receipt order is an unreliable proxy for freshness; FEFO sorts pick priority strictly by expiration or best-before date captured at receiving.
In food, pharma, and cosmetics, FEFO is usually paired with minimum remaining shelf life rules: a retailer may refuse product with less than, say, 70 percent of shelf life remaining, so the WMS must both pick earliest-expiry first and exclude lots that fall below the customer's acceptance threshold. Accurate lot and date capture at receiving is the make-or-break enabler.
Example: a dairy DC receives yogurt from two plants; Tuesday's receipt carries an earlier expiry than Monday's. FEFO logic directs pickers to Tuesday's lot first, and expiry-driven write-offs fall 40 percent compared with the site's previous receipt-date rotation.
Related Terms
First In, First Out: a rotation and valuation method where the oldest inventory is used or sold first. It keeps stock fresh physically and matches oldest costs to current sales in accounting.
Dead StockInventory with no recorded sales or usage over an extended period and no realistic expectation of future demand. It occupies space and capital while generating no return.
ShrinkageThe loss of inventory between receipt and sale from causes such as theft, damage, spoilage, administrative error, or vendor fraud. It appears as the gap between recorded and actual stock.