Also called first expired, first out, first expiry first out
FEFO stands for first expired, first out. When you pick or sell a product, you take the batch with the nearest expiry date first. Usually that is also the oldest stock, but not always, because suppliers sometimes deliver older batches later.
For medicines, dairy, packaged food and cosmetics, FEFO directly cuts losses. Stock that expires on the shelf is a full write-off, and selling expired goods can lead to complaints and legal trouble. It also lets you plan offers on stock that is close to expiry.
A chemist receives a batch of syrup in June that expires in December, then a second batch in July that expires in October. FIFO would sell the June batch first. FEFO sells the July batch first, because it runs out of time sooner. Kownt X's pick lists send pickers to the oldest expiry first.