Blog Post

The Removal method in the Fulfillment Centers are the Important Concepts for the Inventory management System to maintain a Correct Order Management System(OMS)warehouse fulfillment centers. These inventory management methods play a crucial role in optimizing Shipcube's warehouse operations, controlling costs, and ensuring efficient use of resources. Choosing the most suitable method depends on factors such as the nature of the inventory, storage facilities, operational requirements, and business objectives.
FIFO (First In, First Out): FIFO is a method of inventory management where the oldest stock items are sold or used first, while newer items are kept for later use. This method ensures that perishable or time-sensitive goods are utilized before they expire or become obsolete. Commonly used in industries such as food, pharmaceuticals, and perishable goods.

LIFO (Last In, First Out): LIFO is the opposite of FIFO, where the newest inventory items are used or sold first, and the older items are kept in storage. Often used to minimize tax liabilities by valuing inventory at higher costs, which reduces taxable income. May result in mismatches between the cost of goods sold and current market prices.
FEFO (First Expired, First Out): FEFO is a variation of FIFO that specifically prioritizes the use or sale of items based on their expiration dates. It ensures that products with the earliest expiration dates are consumed or sold first, reducing the risk of spoilage or waste. Particularly important for industries dealing with perishable goods or products with limited shelf life.

Closest Location Removal: Also known as nearest-location removal or nearest neighbour method, this approach involves selecting inventory items for removal based on their proximity to the shipping area or point of use. The goal is to minimize travel time and handling costs by picking items from the closest available storage location. Commonly used in warehouses with multiple storage locations or pick zones to optimize order picking efficiency.
Least package removal: It is an inventory picking strategy focused on minimizing the number of packages or containers accessed during order fulfillment. It involves grouping orders, organizing inventory efficiently, and consolidating picking tasks to reduce handling time and improve efficiency in the warehouse. This approach aims to optimize space utilization, enhance accuracy, and increase customer satisfaction by streamlining the order fulfillment process.