Different Removal Strategies in Odoo

If adequate planning and operational principles are not followed when managing inventory operations in a business. It can be exhausting and can cause chaotic situations. Inventory management and its performance are crucial to the success of a company’s operations and product mobility. As businesses digitize their operations, including inventories, management software is being developed to ease their operations. Based on certain criteria, such as increasing the distance for the worker. Quality control, or the reason for product expiration, Odoo 16 warehouse operations use removal methods to choose the best products. Using Odoo, we will manage our inventory more efficiently. Odoo offers three removal strategies: FIFO, LIFO, FEFO, and Closest Location.

As shown below, ensure we have enabled Storage Location, Multi-Step Routes, and Expiration date on Lot & Serial numbers in the inventory settings to use these strategies.

First In First Out (FIFO)

Using a First In First Out strategy, if a product is stocked first, it will be delivered first when a sales order is confirmed. In order to accomplish this, we will create a Demo product and include tracking information as By Lots on its inventory page.

Also, ensure that the removal strategy of the product is set to FIFO within the category of the product

As soon as the force removal strategies are established. Let’s create a purchase order for the product since it is not in stock, as shown below.

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After an order has been confirmed, at the time of reception, the Lot number needs to be added for each quantity of product being purchased since product tracking is set to By Lots. You can do this by mentioning the done quantity under operations on the smart receipt button.

When the purchase order is validated, let’s create a new purchase order for the same product if it needs to be restocked.

A traceability report is generated after a delivery order is validated. And we can see below that the product with Lot number LOT1 will be delivered to the customer instead of the product with Lot number LOT2.

In this strategy, products that are stocked first are removed first when a sales order is confirmed.

Last In First Out (LIFO)

Last, In First Out is the inverse of FIFO, stating that if a product is stocked last. It goes out first in a delivery order if a sale order is confirmed. The operation is tested by creating a new product with the product category set to LIFO. The tracking is set to By Lots on the inventory page, as shown below.

As soon as the force removal strategies are established. Let’s create a purchase order for the product since it is not in stock, as shown below.

As soon as the order is confirmed, we must add the Lot number for the two quantities of product purchased since Lots are set as the product tracking. You can do this by mentioning the finished quantity under the operations on the smart receipt button, as shown below.

When the delivery order is validated, a traceability report is genera`

When we check this report, we can see that the product with lot number CB2 will be sent to the customer rather than CB1.

Odoo 16 shows the last product in the inventory to go out first if a sales order is confirmed.

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