Last In First Out | LIFO

Last In First Out or LIFO is an inventory management rule that is intended to be applied by the operational staff automatically if they are not given specific instructions.

This method consists using the most recent or “last-in” goods first in the production chain. Latest deliveries are often the easiest to access, so it becomes faster for the operator to input directly into production upon arrival.

If products processed by the enterprise have no limitation of use or obsolescence date, this management model guarantees the greatest efficiency.

Related definitions

First In First Out | FIFO