LIFO (Last In - First Out)
goods withdrawals according to the LIFO principle
LIFO is an abbreviation for Last In - First Out . This term stands for a storage strategy that helps organize the warehouse. The strategy determines where and how the goods should be stored and in what order they can be removed for production.
Table of contents
definition
Last In First Out in logistics means that the goods that were stored last are the first to be used when further work steps - such as production or shipping - are due. In short: what was stored last is the first to be released.
characteristics
The LIFO method takes place automatically in companies that do not follow a system for their warehouse planning. The products stored last are simply removed first. The strategy does not require any prior planning, which makes it a simple and cost-effective method .
Mission
Here is a brief overview of interesting facts regarding the use of the LIFO method.
- Used in companies that do not plan their charging strategy in detail.
- Suitable for companies that have insensitive storage products. Items that occupy the rearmost storage spaces usually remain there for a relatively long time, as they are rarely used with this strategy. Example: bulk goods such as gravel and sand, building materials and some metals (Caution: risk of corrosion!)
storage systems and technologies
Common storage systems are suitable for the LIFO method. This means that no special shelves need to be purchased, which saves costs. Since there is no major movement of goods - in contrast to the HIFO method - there are no or only low costs for storage and retrieval.
rack storage
- Simple system of shelves that can either stand freely or be attached to the wall
open-air camp
- Storage of bulk materials on the ground in the form of open spaces or pits
high-bay warehouse
- Each product has its own space. The warehouse consists of high shelves that can be wall-mounted or free-standing
satellite rack warehouse
- The satellite rack warehouse has storage channels in which the load units can be stored multiple times deep. A rail-guided rack conveyor provides access to the storage channels. A satellite is installed in the rack conveyor - an autonomous vehicle with a low overall height. After reaching the storage compartment, it detaches itself from the rack conveyor and drives into the rack compartment.
- The advantages of this warehouse are compact, space-saving storage, direct access and the ability to automate. A disadvantage is the increased costs for the steel construction of the shelves, as these should be of high quality.
row storage
- In row storage, the goods or loading units are placed in rows. There is free space between the individual blocks. When accessing the goods, there is therefore no need to move the units around.
- One advantage of row storage is the cost savings, as no shelves are required. The structure of the goods is therefore flexible. One disadvantage is that only the LIFO principle can be applied. It also requires a large area.
drive-in rack warehouse
- The single-bay warehouse - or drive-through warehouse - is a support structure made of profile elements. The respective industrial truck can drive in or drive through during storage or retrieval. With drive-in racks, retrieval takes place according to the LIFO principle. With drive-through rack warehouses, the retrieval sequence varies.
- One advantage of the drive-in rack storage is that it is particularly suitable for pressure-sensitive goods. The achievable area or space utilization is high. A disadvantage is that this type of storage is suitable for large quantities of the same item. In addition, the items should not have problems with long-term storage.
