FIFO / FEFO Allocation
Understand how IEMSuite automatically allocates stock lots using FIFO (First In First Out) or FEFO (First Expired First Out) strategies.
Lot allocation determines which stock lots are consumed first when fulfilling an order or running a production batch. IEMSuite automates this using either FIFO or FEFO - and you can always override the suggestion manually.
What Is Lot Allocation?
When you need 50 kg of Raw Sugar for a production batch and you have three lots (20 kg, 35 kg, 15 kg), IEMSuite must decide which lots to draw from. The allocation algorithm picks lots in the correct order and splits quantities across multiple lots when needed.
FIFO Explained
First In, First Out
Sort lots by receive date ascending. The oldest lot is consumed first. Good for non-perishable goods where older stock should be cleared before new.
FIFO prevents you from accidentally sitting on old stock while new stock gets used. It is the default strategy and suitable for most manufactured goods, packaging materials, and general merchandise.
FEFO Explained
First Expired, First Out
Sort lots by expiry date ascending. The lot closest to expiry is consumed first. Required for food, pharmaceuticals, cosmetics, and any perishable goods.
With FEFO, lots with no expiry date fall back to FIFO ordering (by receive date). Expired lots are automatically excluded from allocation.
Changing Your Strategy
There is nothing to configure - the strategy follows the product. Products without an expiry date allocate FIFO; products with an expiry date automatically switch to FEFO. Giving a product a shelf life (or receiving lots with expiry dates) is all it takes to switch its rotation.
Manual Override
In the shipment creation screen and production batch lot consumption screen, IEMSuite pre-selects lots according to your strategy but lets you override by selecting different lots manually. This is useful when:
- A customer specifically requests a lot from a certain date
- A lot is physically accessible and another requires moving pallets
- A lot has been allocated to a different customer order and you want to preserve it
Edge Cases
- Insufficient stock across all lots: IEMSuite allocates as much as available and marks the remaining quantity as unfulfilled. You decide whether to split ship or wait for restock.
- All matching lots are reserved: If every available lot is soft-reserved for other orders, new reservations cannot be created. The order waits or you release a reservation from a lower-priority order.
- FEFO with no expiry dates: Falls back to FIFO. If you use FEFO strategy, you should set expiry dates on every inbound log for accuracy.