Concept:
FIFO means First In First Out. FEFO means First Expiry First Out.
Step 1: Understanding FIFO.
In FIFO, the stock received first is issued first.
Step 2: Understanding FEFO.
In FEFO, the stock with earliest expiry date is issued first.
Step 3: When FEFO is better.
When different batches have different expiry dates or shelf lives, FEFO prevents expiry-related wastage.
Step 4: Final answer.
Therefore, FEFO is preferred when there is variation in shelf life.
\[
\boxed{\text{Variation in shelf life}}
\]