FIFO

FIFO, meaning “First In, First Out,” is a material and inventory management method. The oldest stock is considered sold first. The opposed method is LIFO.

Applying FIFO in Lean Production

In lean manufacturing, FIFO enhances efficiency by ensuring the first items received are the first used. This results in:

• Minimizing waste – reducing the risk of product obsolescence.

• Consistent quality – products are made from fresh materials.

• Smooth material flow – delays caused by searching for the right materials are eliminated.