First In, First Out

Prevents aging stock and packaging changes from getting stuck at the back of the shelf. Also an accounting method for valuing inventory.

Is FIFO a warehouse method or an accounting method?

Both. In the warehouse it means shipping the oldest received units first. In accounting it means assigning the cost of the oldest inventory to COGS first; the two do not have to match.

• First Expired, First OutA rotation rule where the units with the earliest expiration date ship first, regardless of when they were received.
• Lot TrackingRecording the production lot or batch number of each unit received and shipped so it can be traced later.