What is LIFO principle in SAP LO-BM - Batch Management?

SAP Term: LIFO principle

• Component: LO-BM

• Component Name: Batch Management

• Description: Batches A sort criterion for the arrangement of batches in the batch selection list. If the batch selection list is sorted according to the Last In First Out LIFO principle, the system will suggest those batches that were placed in storage most recently for goods movements.

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• Key Concepts: 
  The Last In First Out (LIFO) principle is a batch management component of SAP's Logistics Execution (LO) module. It is used to manage the movement of batches in a warehouse, and ensures that the last batch to enter the warehouse is the first one to be removed. This helps to ensure that the oldest batches are used first, and that the freshest batches are kept in stock for longer. 
  
  How to use it: 
  The LIFO principle can be used in SAP's LO-BM Batch Management module to manage the movement of batches in a warehouse. When a new batch is added to the warehouse, it is assigned a unique batch number and stored in a specific location. When an order is placed for a batch, the system will look for the most recently added batch with that number and remove it from the warehouse. This ensures that the oldest batches are used first, and that fresher batches are kept in stock for longer. 
  
  Tips & Tricks: 
  When using the LIFO principle in SAP's LO-BM Batch Management module, it is important to ensure that all batches are correctly labeled with their unique batch numbers. This will ensure that the system can accurately identify which batch should be removed from the warehouse when an order is placed. Additionally, it is important to regularly check the stock levels of each batch to ensure that there are enough batches available to meet customer demand. 
  
  Related Information: 
  The LIFO principle can also be used in other areas of SAP's Logistics Execution module, such as inventory management and material requirements planning (MRP). Additionally, it can be used in conjunction with other principles such as FIFO (First In First Out) and FEFO (First Expired First Out).