Fefo

FEFO stands for First Expired, First Out, an inventory rotation rule that prioritizes picking, issuing, or shipping the lot with the earliest expiration date or shortest remaining shelf life first, regardless of receipt order. FEFO is used for life-limited materials like pharmaceuticals, chemicals, food, cosmetics, and batch-controlled items where quality and compliance depend on shelf life.

On the shop floor and in the warehouse, FEFO is enforced at the lot or batch level inside WMS, ERP, or MES processes. Receiving captures the expiry or retest date, put-away stores material by location and status, and picking logic directs operators to the eligible lot with the nearest date first. In production, applying FEFO at kitting stations ensures the oldest usable raw material is issued first, reducing write-offs and preventing degraded inputs from entering manufacturing. It is more precise than FIFO because FIFO only considers receipt order, whereas FEFO uses actual remaining usable life. FEFO only works when master data is accurate for expiry date, lot status, and material suitability. For material tracking systems, FEFO applies to raw materials, WIP, and finished goods where expiration, potency drift, or regulatory shelf-life limits affect disposition. This approach reduces scrap, avoids blocked shipments, and keeps shop-floor consumption sequencing stable.