Inventory Management Methods in the Warehouse

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For most ordinary people, running a business looks so simple and easy that they think that anyone can do it. But all that is not true, because not everyone can achieve success from the business they run. That's a sign running a business is not as easy as they think.

Many things need to be considered, especially in inventory management. In this case, strategic and systematic handling will be needed, especially in managing stock. Managing stock requires accuracy in knowing the expiration date of a product. You want to avoid products that spoil because they've been in storage for too long.

Inventory Management Methods for Goods in Warehouses

In managing inventory or stock in warehouses, several general methods are commonly used so that they can manage warehouses properly, which include:

The FIFO (First In First Out)

method The FIFO method is a meaningful inventory management method The first item will be the first item out. This means that the first item in inventory will be the first item out of stock. This is intended so that the first item is not damaged because it has been in storage for too long.

The LIFO (Last In First Out)

The method is different from FIFO. This method is an inventory management method that takes out/sells the last incoming item. This is intended to follow the trend of goods. For example, a clothing store will release its latest inventory so they can display the latest clothes in their store.

The FEFO (First Expired First Out)

The method is also different. This inventory management method removes the items with the closest expiration date first. This is intended to prevent expired goods from being stored in the warehouse.

The application of this method is commonly used in pharmacies or retail stores that sell packaged food or drinks that have an expiration date.

Not all businesses can use just any method. However, by using the right method, the quality of inventory in the business will be maintained.