What is FIFO principle in SAP LE-WM - Warehouse Management?

SAP Term: FIFO principle

• Component: LE-WM

• Component Name: Warehouse Management

• Description: A stock removal method in which the materials first transferred to a binare the first to be removed from the bin, first in, first out. In the system, you can use this stock removal strategy for one storage type or for all storage types strict FIFO.

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• Key Concepts: 
  The FIFO (First In, First Out) principle is a method of inventory management used in SAP Warehouse Management (LE-WM). It is based on the idea that the first items to enter a warehouse should be the first items to leave. This ensures that the oldest items are used first, and that the newest items are kept in reserve. 
  
  How to use it: 
  In SAP Warehouse Management, the FIFO principle is used to manage inventory. When goods are received into a warehouse, they are stored in a specific location and given a unique identifier. When goods are requested for delivery, they are retrieved from the same location and identified by their unique identifier. This ensures that the oldest items are used first. 
  
  Tips & Tricks: 
  When using the FIFO principle in SAP Warehouse Management, it is important to ensure that all goods are properly identified and stored in their designated locations. This will help ensure that the oldest items are used first and that the newest items remain in reserve. 
  
  Related Information: 
  The FIFO principle is just one of many inventory management methods used in SAP Warehouse Management. Other methods include LIFO (Last In, First Out) and FEFO (First Expired, First Out). Each method has its own advantages and disadvantages, so it is important to choose the right one for your business needs.