GlossaryEN1 min readUpdated: Jun 26, 2026

LIFO (Last in, First out)

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Last updated: 26 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/LIFO

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Logistics Concept

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Definition & Explanation

A warehouse operative picks the newest pallet from a block stack while older stock sits behind it – that is LIFO (Last In, First Out) in practice: the most recently stored goods leave the warehouse first. Physically, LIFO suits bulk materials, homogeneous stacked goods, or items where age is irrelevant, such as gravel, steel sections, or standard packaging. For perishables or date-coded products, LIFO is unsuitable; FIFO (First In, First Out) is the required approach there. On the accounting side, LIFO allows companies to record higher cost of goods sold during inflationary periods, reducing reported inventory values – a method permitted under US GAAP but prohibited under IFRS, the standard applied across the EU and in most other major economies.

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