What is LIFO?
LIFO is an inventory management and stock valuation method where the last items to enter the warehouse are the first to be shipped. Technically, the most recent goods are the first to leave, while older stock accumulates at the back of the storage structure.
Applications and Infrastructure
This method is closely tied to high-density storage solutions, where access is made from only one side of the aisle:
Drive-in Racking
The forklift enters the racking channel and deposits the pallet. The last pallet placed blocks access to the previous ones, making it necessarily the first to be retrieved.
Stacking Systems
When goods are stacked directly on the floor or in blocks.
Non-Perishable Products
LIFO is ideal for goods that don't have a short expiry date or that don't suffer from rapid obsolescence (e.g., construction materials like sand, stone, or certain industrial products).
The Role of WMS in LIFO
Although it seems simple, managing LIFO requires rigor to prevent stock at the back of shelves from being "forgotten" for years.
Lot Control
The WMS records the entry date of each pallet. Even in LIFO systems, the system can alert if an old lot exceeds its maximum storage time.
Space Optimization
The system suggests using the LIFO method to maximize warehouse occupancy density when date rotation is not a priority.