FIFO, FEFO principle

The FIFO principle, the FEFO principle, are the basic requirements of a quality management system.

The principles

  • FIFO (First In, First Out)
  • FEFO (First Expiry, First Out)

are often applied in the management system to determine the order of release and operation of materials, shipment of finished products. The application of these principles is often a consequence of the need for:

  • inventory turnover due to shelf life and warranty periods
  • management of balances of work in progress, semi-products.

The FIFO principle in relation to the purposes of application is presented in detail in our article:

For more information, see the section Warehouses, website www.be-expert.ru

Common methods to help apply the FIFO principle in life are

  • barcoding system
  • identification tags
  • physical movement of batches of product.

The most common practice is the application of identification tags. The FIFO principle is then implemented by the performers by visual information. However, even in tags errors can occur.

Example 1. A tag with the general wording “To be used first” (as we have in the photo to this article). However, when it comes to inventory turnover and limited shelf life, you should know UNTIL which date the product can be used. If the “first call” for a component never comes, the tag will carry the wrong information.

Example 2. A tag stating “Date of manufacture: XXX”. This approach is applicable if there is not much variety in the expiry dates. For example, all products manufactured by the company have a shelf life of 24 months. However, there would be confusion amongst the staff if there are different expiry dates for different types of products.

An example of a procedure for inventory turnover management can be obtained during our online training on ISO 9001.



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