Stock Rotation
Some inventory has a limited lifetime, so by using the oldest inventory first, the risk of obsolescence is reduced significantly. This is particularly relevant to products which have expiry dates such as medicines, foodstuffs and cleaning products.
There are two main stock rotation processes that are used within the warehouse:
- First in First Out (FIFO) – The oldest items are used up before the newest stock items
- Last in First Out (LIFO) – The newest items of stock are used up before the oldest
Consistently using one of these rotation processes ensures good traceability for audit purposes and in the event of a product recall.
Inventory Locations
Inventory can be located using one of three basic systems:
- Fixed Location
- This is normally used for fast-moving items
- A specific part identification is allocated to a specific location
- Staff know exactly where the material or product is located
- Random Location
- Incoming stock is allocated to the next available area against specific criteria such as size, weight, and/or quantity, by the Warehouse Management System (WMS)
- Using barcoding or RFID in conjunction with this method can help staff locate products efficiently
- Zoned Location
- Items stored in specific locations determined by the characteristics of the item
Specific personnel work in specific areas and become familiar with locations