Warehousing is the process of effectively and efficiently storing and managing all the raw materials, tools and finished goods in a warehouse. Warehousing is a critical part of an organizations supply chain.
There are different methods or systems to effective warehousing
FIFO: first in first out basically implies that raw materials that come first should be used first. This ensures no aged materials are stored in the warehouse. Best used in the food industry
LIFO: Last in, first out is a method used to account for inventory. Under LIFO, the costs of the most recent products purchased (or produced) are the first to be expensed.