Last In, First Out (LIFO)

Last In, First Out (LIFO) is a stock management method where the newest stock (the last in) is used or sold first (the first out). It’s the opposite of FIFO and is less common in industries dealing with perishable goods.

Why LIFO Is Used

LIFO can make sense in some situations, especially where:

Products don’t expire or lose value over time
The newest stock is easier to reach or more relevant
Businesses want to match recent costs to current prices (often in accounting)

Where It’s Used

Construction materials: Where newer batches may be easier to access
Certain manufacturing: If newer components need to be used first
Accounting: Some businesses use LIFO to manage stock costs during inflation

Example

If a warehouse receives 200 boxes in March and another 200 in April, the April stock is sent out first under the LIFO method.

More Fulfilment Terms

Purchase Orders (POs)

A purchase order (PO) is a document a buyer sends to a supplier to confirm they want to buy goods or services. It lists what they’re ordering, how much they need, and when they want it delivered.

Batch Picking

Batch picking is a warehouse picking method where similar orders are grouped so they can be picked at the same time. Instead of picking one order, completing it, and moving on to the next, your warehouse team collects all items that appear across multiple orders in one run.