A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which of the following storage systems should they utilize?

To maintain a strict first-in, first-out (FIFO) stock rotation, a flow rack (or pallet flow) system is the most suitable choice. In this system, pallets are loaded onto one side of a sloped rack equipped with rollers or wheels. Gravity causes the pallets to move ("flow") to the opposite side for picking. This design physically ensures that the first pallet loaded into a lane is the first one to be picked, automatically enforcing FIFO rotation, which is critical for perishable or date-sensitive goods.

A. Pallet racking (standard selective rack) allows access to any pallet, so FIFO must be managed by a warehouse management system (WMS) and operator discipline; the rack itself does not enforce it.
B. Block stacking is inherently a last-in, first-out (LIFO) system because the last pallet placed in a stack or row must be removed first to access others.
D. Push-back racking is a last-in, first-out (LIFO) system where the last pallet loaded into a lane pushes previous pallets back and is the first one available for retrieval.

1. APICS CLTD Learning System, Module 3, Section A: Warehouse Management. Discusses storage equipment, describing how pallet flow racks are designed specifically for high-volume, FIFO operations.

2. Richards, G. (2017). Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse (3rd ed.). Kogan Page. Chapter 6, "Warehouse Equipment and Systems," explicitly states that "Pallet live [flow] storage... operates on a first-in, first-out (FIFO) basis." (p. 134).