FEFO (first-expiry-first-out)
A picking rule that sells the batch with the nearest expiry date first, so stock leaves the shelf before it can turn.
FEFO decides which batch goes out when you sell an item you hold in more than one lot. The batch that expires soonest is picked first.
Why it is not the same as FIFO
FIFO sends out whatever arrived first. That works when goods do not expire. With medicines, food, paint or chemicals, the oldest delivery is not always the one closest to expiry — a supplier can send you short-dated stock in a later consignment. FEFO looks at the expiry date, not the receipt date.
What it needs from your records
FEFO only works if every receipt records its batch number and expiry date. Without that, the system has nothing to sort on and the counter picks by hand.
Overrides
Sometimes you must ship a later batch — a customer needs a longer shelf life, or the near-expiry lot is damaged. Allow it, but make it a deliberate choice with a recorded reason, so the exception is visible later.
Where you feel the benefit
Near-expiry write-offs drop, returns to supplier happen while the goods still have value, and recalls trace straight back to the lot.