What is first in first out in SAP IS-AFS-ARUN - Allocation Run?

SAP Term: first in first out

• Component: IS-AFS-ARUN

• Component Name: Allocation Run

• Description: The principle used in the allocation run of assigning existing stocks to requirements. If there is not enough stock to fulfill all the requirements of all customers, the assignment of the stocks takes place corresponding to the time sequence in which the requirements occured. As long as you have not specified your own sort sequence, the system first fulfills the requirements of orders that were placed at the beginning of the allocation time period.

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• Key Concepts: 
  First in first out (FIFO) is a method of inventory management used in SAP's IS-AFS-ARUN Allocation Run component. It is a system of inventory control that ensures that the oldest items in stock are used or sold first. This helps to ensure that the most recently purchased items are not left sitting on the shelf for too long. 
  
  How to use it: 
  In SAP's IS-AFS-ARUN Allocation Run component, FIFO is used to manage inventory. When an item is purchased, it is added to the inventory and given a unique identifier. When an item is sold, the oldest item in the inventory with that identifier is used or sold first. This helps to ensure that the most recently purchased items are not left sitting on the shelf for too long. 
  
  Tips & Tricks: 
  When using FIFO in SAP's IS-AFS-ARUN Allocation Run component, it is important to keep track of when items were purchased and when they were sold. This will help ensure that the oldest items are used or sold first and that the most recently purchased items are not left sitting on the shelf for too long. 
  
  Related Information: 
  FIFO is just one of many methods of inventory management used in SAP's IS-AFS-ARUN Allocation Run component. Other methods include Last In First Out (LIFO), Average Cost, and Specific Identification. Each method has its own advantages and disadvantages, so it is important to research each one before deciding which one is best for your business needs.