Glossary
What is FEFO?
FEFO (first expired, first out) is a rotation method where the stock closest to its expiration date is used or sold first, regardless of when it arrived.
Definition
FEFO refines FIFO for dated goods. FIFO assumes the oldest arrival should leave first, which usually tracks expiration, but not always: a supplier ships you a short-dated batch after a long-dated one, and suddenly the newest arrival is the first to expire. FEFO picks by the expiration date itself, so the short-dated batch jumps the queue.
The prerequisite is expiration data on the record, captured at receiving per lot. Without it, FEFO is a sticker on a wall. With it, the system can sequence picks by date, flag stock entering its warning window (30, 60, 90 days out, depending on the product), and quantify expiry write-offs by SKU and supplier, which is how you discover that one vendor consistently ships you product with half its shelf life gone.
FEFO is standard practice in pharmaceuticals, food, medical supplies, adhesives and sealants, and anything with a use-by date where expired stock is a compliance issue rather than just a loss. The physical side has to cooperate: putaway places long-dated stock behind short-dated stock, and pick lists name the lot to grab, not just the bin. Where teams trip: running FEFO at the warehouse but not the truck or jobsite, where a technician grabs whichever tube is closest and the short-dated stock quietly expires in bin 3 of van 7.
Example
A clinic holds two lots of lidocaine: lot A expiring in 4 months and lot B, received more recently but short-dated, expiring in 6 weeks. FEFO picks lot B first, and the dashboard flags it at 30 days out so the remaining vials get used before write-off.
By Cameron Priest · Co-founder, Order3
Cameron co-founded TradeGecko, the inventory platform acquired by Intuit. He has spent more than a decade building software for the people who run physical stock.
Updated 2026-06-16
Related terms
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