With the FIFO system, those older items are registered as they were sold for the first time, while with the LIFO system, the new inventory items are recorded as they were sold for the first time.
When we use the FIFO method, we are ensuring that the first merchandise that enters the warehouse is the first to leave.
If our warehouse is of perishable products (food, medicines, cosmetics) or products that could go out of style (textiles) or obsolete (technology) the FIFO method is the way to go.
In contrast to the FIFO system, the LIFO method is characterized by the last input, the first output is the goods management.
With the LIFO method, the most recent entry in the warehouse is the entry that is sent first. The new merchandise has priority with respect to the others.
Ideal for the storage of those products that are homogeneous that do not expire or perish.
The management of the goods is a warehouse is one of the most important logistics parts, where we seek maximum optimization and want to ensure that the products are in the right place at all times.