FIFO FEFO & LIFO In Pharma 

The FIFO,FEFO & LIFO are three very common terms which are used for inventory management in raw material stores,warehouses & pharmacies.

In this article we will explain the basic difference between the above mentioned terms.

FIFO

FIFO Stand for First In,First Out & is the most commonly used technique to manage the stock or inventory in pharmaceutical industries.

FIFO FEFO & LIFO

Explanation

FIFO means the product which is received first in the raw material store will be dispensed first.

In the FIFO technique we arrange all the materials on the basis of their date of arrival to the warehouse of the pharmaceutical industry.

Examples 

Suppose a lot of Ciprofloxacin HCL was received on 01/11/2023 & second lot was received on 20/01/2024. According to FIFO the lot received on 01/11/2023 will be used first for dispensing.

In pharmaceutical industries from manufacturing point of view,the product of a specific batch which will be manufactured first will be sold first 

Advantages OF FIFO

    • The oldest stock is used first.
    • FIFO ensures product safety & quality by removing older stock first.
    • The FIFO system ensures that the products are not wasted due to out dates.
    • FIFO provides a high level of assurance to the customer that the products which they are receiving are of High quality as they are freshly prepared.
  • FIFO saves money by timely utilization of old stock.

What Is FEFO

FEFO is another inventory management technique & is used for those products which have shelf life or expiry date.

FEFO stands for ‘First Expired,First Out’

Explanation

By implementing the FEFO system the inventory is managed on the basis of expiry date & we will first dispense the material which is going to be expired first.

In the FEFO system we arrange our materials on the basis of expiry date instead of on the basis of arrival.

Example

Suppose we received a lot of Ciprofloxacin HCL on 01/11/2023 & have expiry date 2026 & second lot was received on 20/01/2024 having expiry date 2025 according to FIFO the lot received on 01/11/2023 will be used first for dispensing but according to FEFO the lot which is going to be expired first will be used for dispensing.

Mean in FEFO we don’t follow the date of arrival or ‘In date’ but we follow the expiry date.

Advantages OF FEFO

  • Reduce product wastage due to use of early expiry products first.
  • From a manufacturing point of view, provide confidence that expired materials are not used.
  • FEFO helps to follow strict regulatory rules.
  • Better customer satisfaction by preventing use of expired products.

LIFO

LIFO is another inventory management technique but is not highly recommended for pharmaceutical products.

LIFO stands for Last In,First Out, & is used for mostly those products which have no shelf life.

Also Read

  1. GMP vs cGMP and 21 CFR.
  2. Qualification|FAT|SAT|DQ|IQ|OQ|PQ
  3. Difference between Validation & Calibration.
  4. 100 MCQs to revise your pharmaceutical knowledge.
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