First Expired First Out ( FEFO ) In Consumer Goods Distribution

In theories about the flow term warehousing of products that are used are FIFO and LIFO. FIFO, which means the first entry should be the first time is also a priority to get out. Instead LIFO means that the last time it entered the first time out. Usually the concept is widely used is FIFO, it is only natural that first line must be served. But what if the product is a "bulk material such as sand" which is just put in a great place. It is impossible to take the lower right first, so that certainly the first to come out the top.

Different things happen to food products, beverages, medicines, medical devices or products that have a shelf life like a pulse Voucher. Although basically using FIFO concept, but when the product is having a warehouse transfer can even occur quite frequently back and forth out of the warehouse the same time it did not rule out the last product has a shelf life into it early. How?

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Think of examples of beverages in containers having expired in January 2010 arrived at the warehouse this month. In accordance with the smoothness of the product demand is distributed to branch warehouses throughout the village had even got around to retailers. Over time, competition in the packaged beverage sales as a result of high enough in remote areas is very bad because they lost to the local product. Because the shelf life is getting closer, of course, very unfortunate if the drinks are not allowed to move in the area. Incidentally sales in big cities is better, so consider these drinks drawn back to the big city warehouse that greater market demand. Though a large warehouse in the city are now storing beverage products with a shelf life in January 2012. As a result the final product in the warehouse into a big city today is a product that will be expired in 2010. With these conditions, the products are prioritized for the first out of the warehouse that has the closest expiry date.

Thankfully WMS applications that have been circulating now FEFO support for the process rather than a conventional FIFO. Even now, almost all products will begin to lead to a system FEFO although for spare-parts though. FEFO course is required for the function of many warehouses that serve as the hub in and out of various sources.
FEFO may have an impact on accounting systems, especially if there is a difference in price. What about the accounting implications? could have turned out to be applied to the concept of FIFO or LIFO (in the conventional accounting system). But with the ERP at this time, listing each product is feasible up to the most detailed level.