FIFO,LIFO, Random Outgoing, Rack Is Suitable For Use

- Jun 24, 2020-

When it comes to inventory mode, many people first come up with the FIFO model. In fact, the role of FIFO is not omnipotent. Warehousing work, FIFO, LIFO, random out of the warehouse is a common mode of material out of the warehouse. But no matter what kind of outgoing mode, there must be inextricably linked with the characteristics of the goods themselves. Next, let's take a look at the little Hercules.


FIFO means that goods received in advance are displayed in front of those received in the latter, ensuring that the goods produced before the date of production are sold first. It refers to the method of calculating the cost of issuing inventory at the unit price of first-in-stock according to the principle of first-in-first-out.

Advantages: The main function of FIFO is to ensure that all goods are sold within the normal shelf life, control wastage and reduce costs. So that enterprises cannot arbitrarily select inventory valuation to adjust the current profits. For customers, the goods purchased must have a certain period of time to use during the shelf life. If the goods that have passed the shelf life are purchased, the credit of the mall will be damaged and affected. For goods without a clear shelf life, FIFO can always keep the goods on display fresh.

Disadvantages: FIFO is not everything. The drawback is that the workload is rather cumbersome, especially for enterprises with frequent inventories. Moreover, when prices rise, the current profit and inventory value of the enterprise will be overestimated; otherwise, the inventory value and current profit of the enterprise will be underestimated.

FIFO RACKS: Light duty rack, medium duty rack, pallet rack, VNA rack, gravity rack, flow rack, radio shuttle rack and so on, most of them are FIFO racks.


LIFO is based on an inventory flow hypothesis, i.e., the "post-warehousing, pre-issuance" hypothesis, and its basic feature is to match the cost of the inventory sold to its realized sales revenue at the latest acquisition cost. For most enterprises, LIFO is usually chosen when the price of the expected inventory is rising.

LIFO RACKS: Drive in rack, push back rack, double deep rack and so on.

3. Random out of stock.

Random out of stock warehousing mode may be the enterprises own goods in the cost fluctuation of small changes, no shelf life or by market factors and financial cost accounting requirements are not high factors such as impact.

Welfor is specialized in producing various pallet rack, cantilever rack, medium duty rack, mezzanine and platform, slotted angle shelving, push back rack, longspanrack, rivet rack, drive in rack, carton flow rack, stacking rack and other related storage equipment.

Welfor strictly implements ISO9001, FEM10.2.02, SEMA, AS4084 and RMI standard in all operations. Welfor offers a wide range of products to meet all of your order fulfillment & material handling needs: pallet rack and cantilever rack. Whether you are looking to populate an entire warehouse or you are in need of a single piece of equipment, Welfor has a solution for you.