GlossaryEN1 min readUpdated: Jun 22, 2026

Last-in-First-out (LIFO)

LIFO (Last-in-First-out) offers a practical retrieval advantage wherever access to recently stored goods is operationally simpler than cycling through older layers of stock.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Last-in,_first-out

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Definition & Explanation

LIFO (Last-in-First-out) offers a practical retrieval advantage wherever access to recently stored goods is operationally simpler than cycling through older layers of stock. Bulk commodities such as coal, ore, and gravel, stacked steel pipes, and container block-stacking at port terminals are classic examples; for these materials, storage duration has no quality impact, so reversed retrieval order carries no penalty. Where goods carry expiry dates—pharmaceuticals, perishables, temperature-sensitive cargo—LIFO is unsuitable, as older inventory would remain buried indefinitely. The term also appears in financial accounting as an inventory valuation method with tax implications in certain jurisdictions, a distinct application that should not be confused with the warehouse management principle.

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Last-in-First-out (LIFO)

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