Stock Rotation: LIFO Vs FIFO – Stock rotation method

Stock rotation is process of outputs & inputs of stock from inventory to move in sequence by systematic method.  Normally it may contain either FIFO ( first in first out) or LIFO (Last in first out).

Introduction to stock rotation

Stock rotation is systematic method conducting to managing inventory. Where all the concern processes can handle accordingly. The stock rotation process is important tasks that require to care during rotation process of inventory. Which inventory having functional issues needs to prevent of damages, obsolescence, fluids, spoilage etc.

All the inventory  in warehouse needs to proper prevention, the stock rotation process helps to identify the materials are stacking is over the limits (the limits of stock time are needs to define, each materials stock time and quantity limits are depends on materials).

That the system indicate stock over the limits that needs to output first, that is FIFO (First in first out) system is use to maintain stock inventory in warehouse is appreciate. The inventory management monitoring on activities of stock rotation is accurately circulate as auto system ( Auto system does not mean mechanical, but technically the system helps to identify materials needs to output first, and resources supports as the same )


Why Stock Rotation is required?

The system establishment needs to ensure the product quality. The stock rotation helps to identify treat in the inventory management where safety & product quality are considerable. Tthe system requirements for product self life for food product.


LIFO vs FIFO: Stock Rotation Method

Generally, the stockiest are use best popular methods are LIFO (Last In First Out) and FIFO (First In First Out). Both the methods are widely uses at its appropriate requirements of product storage. The product stock and its method are important for the stock house. Hence the which system is best for its product is important, where the product having a self life that needs to care by FIFO system. LIFO is considering on cost requirements, there is also possible that the some of warehouse maintains and output the product as mix methods. But it is not recommended to maintain appreciate inventory management.

See picture below example of stock output, below picture for education purpose:



Stock rotation controls

Stock rotation and its controls are manage on some basic requirements are documentation and records. The comprehensive documents records are best option for proper controls over the stock rotation process. Stock materials should be periodically verification and reconciliation process should maintain to ensure the stock.

The stock inconsistency should be manage as significantly in the warehouse to ensure the product stocked and rotating is having a correct values and quantity are maintaining. Damage materials should be maintain separately and same for the outdated materials to avoiding mixing the product having a use in various requirements.


The documentation for the stock rotation Is verify important that needs to maintain each document should be controlled by concern management. Department should be verify the document as per review requirements, and its full audit should maintain at least two time in year by internal auditor and once time by external auditors for maintain system in organization.


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Fee Stock rotation example



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