What is the main difference between FIFO & FEFO?
What is the main difference between FIFIo & FEFO?
Dear Mohamed,
First in first out, as the sentence itself explains that whichever comes first will be used first, it is mostly applicable to packing materials. example: If you have received 3 consignments of Jars on 10.09.2019, 11.09.2019 & 15.09.2019, in this case you should use the jars first received on 10.09.2019, then 11.09.2019 and then 15.09.2019.
Where as First expiry first out (FEFO) applicable to Raw materials and finished products. Example: raw material which going to expire first should be used first irrespective of the date of receipt, and same with finished products.
In case raw material of Finished product received on different dates with same expiry, then you should apply FIFO here.
Main difference is its applicability i.e. raw material, packing material and finished products.
Thanks