The First In, First Out (FIFO) removal strategy selects products with the earliest arrival dates. This method is useful for companies selling products that have short demand cycles, like clothes, for example. By using FIFO, companies can prevent prolonged stock retention of specific styles.
Various quantities of the product,
T-shirt, tracked by lot numbers, arrive on August 1st and
August 25th. For an order made on September 1st, the FIFO removal
strategy prioritizes lots that have been in stock the longest. So, products received on August
1st are selected first for picking.
To see the product lot or serial number that arrived in inventory first, navigate to.
Then, select the ▶️ (right-pointing arrow) icon on the left of a product line, in order to reveal a list of the product’s lots or serial numbers that are in stock. The Created On field shows the lot/serial number creation date, which is, essentially, the arrival date.
00000000500 of the product,
Cabinet with Doors, arrived on December 29th, as
displayed in the Created On field.
To understand how FIFO rotates products out, consider the following example, focusing on three lots of white shirts.
The shirts are from the All/Clothes category, where FIFO is set as the Force Removal Strategy.
The white shirts are tracked By Lots in the Inventory tab of the product form.
The following table represents the on-hand stock and lot number details of white shirts.
To see the removal strategy in action, create a delivery order for six white shirts by navigating to the and creating a new quotation.
After clicking Confirm on the sales order, a delivery order with the oldest lot numbers for shirts are reserved, using the FIFO removal strategy.
To view the detailed pickings, click the ⦙≣ (bulleted list) icon, located on the far-right of the white shirt’s product line in the Operations tab of the delivery order. Doing so opens the Open: Stock move pop-up window.
In the Open: Stock move pop-up window, the Pick from field displays where
the quantities to fulfill the Demand are picked from. Since the order demanded six
shirts, all five shirts from
LOT1, and one shirt from
LOT2, are selected.