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. IEMSuite uses FIFO or FEFO for automatic order reservations. Production input lots are selected and reviewed separately in the batch form.
What Is Lot Allocation?
When an order needs 50 units of Packaged Cookies and you have three lots (20 units, 35 units, 15 units), 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. Useful for goods whose expiry dates determine stock rotation.
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. The decision uses recorded lot expiry dates. Check the actual expiry on received lots; a product shelf-life setting alone is not an expiry date on existing stock.
Manual Override
When preparing a shipment or creating a production batch, you choose the lots to use, so you must respect availability, quality status, expiry and existing reservations. Shipment selection can adopt that order’s existing reservations or reserve eligible unreserved stock. It cannot consume quantities reserved by another order or shipment. This is useful when:
- A customer specifically requests a lot from a certain date
- A lot is physically accessible and another requires moving pallets
- Other orders already reserve quantities that your shipment or batch must leave available to them
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 reserved for other orders, new reservations cannot be created. The order waits for more stock, or you cancel another order or shipment to free its reservations.
- 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.