Legal Definitions - LIFO

LIFO stands for Last In, First Out. This principle describes a method where the most recently added item or piece of information is the first one to be taken out, used, or processed. Essentially, the newest items are prioritized for removal before any older items.

Here are some examples to illustrate the LIFO principle:

• Physical Document Processing: Imagine an administrative assistant who manages a physical "in-tray" for incoming reports. New reports are always placed on top of the existing stack. When the assistant begins processing, they consistently pick the report from the very top of the pile to work on first.

  Explanation: The report that was most recently placed into the tray (the "last in") is the first one the assistant processes and removes (the "first out").

• Computer Memory Stack: In computer science, a data structure called a "stack" is often used for temporary storage of information, such as function calls or local variables. When a program needs to store new data, it "pushes" it onto the top of the stack. When it needs to retrieve data, it "pops" it off the top.

  Explanation: The last piece of data that was added to the stack (the "last in") is always the first one to be retrieved or removed (the "first out").

• Specialized Inventory Management (Non-perishable, stacked): Consider a small hardware store that receives regular deliveries of heavy, identical bags of cement. For ease of handling and storage, new bags are always stacked directly on top of the existing pile in the back room. When a customer purchases cement, the store clerk always takes a bag from the very top of the stack.

  Explanation: The most recently delivered bags of cement (the "last in") are the most accessible and therefore the first ones sold or removed from inventory (the "first out").