What does the acronym FIFO stand for in stock rotation?

The acronym FIFO stands for "First-In, First-Out." This concept refers to a method of stock rotation where the first products added to inventory are also the first ones to be used or sold. In a materials management context, this practice is crucial for ensuring that older inventory is consumed before newer stock, which is especially important for items that may have expiration dates or degrade over time.

Using FIFO helps maintain quality control and minimize waste, as it prevents older materials from remaining unused in storage for prolonged periods. In the coatings industry, this approach is vital for ensuring that materials such as paints and coating materials are used while they are still within their specified shelf life. Adopting FIFO can enhance efficiency in inventory management, leading to more effective use of resources and reduced risk of using expired or degraded materials.

Understanding FIFO's role in stock management reinforces the importance of maintaining product quality and compliance in various industries, including coatings and other applications where material integrity is essential.