FIFO & LIFO Removal Strategy | Odoo Inventory

Summary

This tutorial explores two inventory management strategies, FIFO and LIFO, in Odoo's warehouse system. It explains how to enable lot tracking and configure removal strategies either by location or product category. The video demonstrates setting up these strategies and how they affect the picking process, ensuring older or newer products are delivered first based on the chosen method, enhancing inventory rotation and product freshness.

Takeaways

• 🧦 Struggling with identical socks is a daily issue, and similarly, Odoo's warehouse management can struggle with picking identical products for orders.
• 📦 Removal strategies, such as FIFO (First In, First Out) and LIFO (Last In, First Out), are essential for managing stock rotation based on product arrival dates.
• 🔧 To implement FIFO and LIFO, Odoo requires the activation of 'Lots & Serial Numbers' in the system settings for tracking product information like arrival dates.
• 📈 Lot numbers are used for tracking groups of products, while serial numbers track individual products, and both can be used for setting up removal strategies.
• 🏢 'Storage Locations' and 'Multi-Step Routes' need to be enabled in the Warehouse settings to facilitate the use of removal strategies for different areas within the warehouse.
• 🛒 Products must be tracked by lots to ensure they are correctly associated with their arrival dates, which is crucial for the FIFO and LIFO strategies.
• 📝 The 'Created On' date for lots indicates the arrival date, which determines the order of stock rotation for FIFO and LIFO strategies.
• 📍 Setting a removal strategy on a specific location, like 'Shelf F', will apply that strategy to all products stored there, ensuring older stock is shipped out first with FIFO.
• 💡 Removal strategies can also be set on product categories, which will override any strategies set on individual locations.
• 🛍️ Demonstrating the setup, the script shows how a sales order automatically selects the correct lot numbers based on the chosen removal strategy, ensuring proper stock rotation.
• 🔄 The script concludes with a reminder that there are additional removal strategies to be explored in future videos, indicating ongoing educational content for Odoo users.

Q & A

What is the main purpose of removal strategies in warehouse management?

Removal strategies help ensure that products are picked and delivered in a specific order, based on when they were received in the warehouse, to optimize inventory rotation and reduce the likelihood of stock aging.

What are the two removal strategies discussed in the video?

The two removal strategies discussed are First In, First Out (FIFO) and Last In, First Out (LIFO).

When would a warehouse use the FIFO removal strategy?

A warehouse would use the FIFO removal strategy when it wants to ensure that products that entered the inventory first are the first to be shipped out, helping to prevent items from sitting in storage for too long.

In which scenario is the LIFO removal strategy beneficial?

The LIFO removal strategy is beneficial when a warehouse wants to prioritize shipping out the most recently received products first, which might be useful for certain types of inventory management or to meet specific customer demands.

What must be enabled in Odoo to use removal strategies based on lots?

To use removal strategies based on lots in Odoo, 'Lots & Serial Numbers' must be enabled in the Traceability section of the settings.

How does enabling 'Storage Locations' and 'Multi-Step Routes' in Odoo help with removal strategies?

'Storage Locations' allows products to be stored in specific locations in the warehouse, each with its own removal strategy, while 'Multi-Step Routes' provides more options for how products are moved and managed within the warehouse.

How do lot numbers help in managing removal strategies?

Lot numbers track product information, such as arrival dates, for all products within a specific group, enabling the implementation of removal strategies like FIFO and LIFO based on when products entered the warehouse.

What is the significance of setting a removal strategy on a product category?

Setting a removal strategy on a product category applies the strategy to all products within that category, overriding any removal strategies set on individual locations.

How does the FIFO removal strategy work in the context of the Standing Desks example?

In the Standing Desks example, the FIFO removal strategy ensures that desks from LOT 1, which arrived first, are picked and shipped out before desks from LOT 2 or LOT 3.

What happens when a LIFO removal strategy is set for the 'Large Furniture' product category?

When the LIFO removal strategy is set for the 'Large Furniture' category, products like the Standing Desk will have the most recently arrived items, such as those from LOT 3, picked first for customer orders.