Literature Review: Comparative Analysis of FIFO and FEFO Management Methods

Efficient inventory management is a crucial factor in the success of a company's operations, especially in the midst of increasingly fierce business competition. The FIFO (First In, First Out) and FEFO (First Expired, First Out) methods are two commonly used approaches to managing stock, each with its own characteristics and advantages. FIFO, which emphasizes the principle that the first item in is the first item out, is more effective for products with a long shelf life. FEFO, on the other hand, is more suitable for products that have a limited expiration period, with priority given to products that are close to expiration. This research aims to provide a comparative analysis between the two methods based on a review of existing literature. The results of the analysis show that the FIFO method is more suitable for non-perishable products, while FEFO is very effective for perishable products. The decision in choosing an inventory management method should be based on the type of product, market characteristics, and the company's ability to implement the technology required to support each method. This research provides practical recommendations for companies in choosing the appropriate method to improve operational efficiency and minimize losses due to wastage or expired products.