First in First out (FIFO) Rule Definition and Explanation PDF | Download eBooks
Learn First in First out (FIFO) Rule definition in supply chain management with explanation to study “What is First-in, first-out (FIFO) Rule”. Study first in first out (fifo) rule explanation with SCM terms to review supply chain management course for online MBA programs.
First in First out (FIFO) Rule Definition:
A queue discipline in which the first customers in line receive the first service.
Operations Management: Sustainability and Supply Chain Management by Jay Heizer, Barry Render, Chuck Munson
First in First out (FIFO) Rule Explanation:
First in, first out (FIFO) is an advantage the executives and valuation technique wherein the benefits delivered or procured first are sold, utilized or discarded first and might be utilized by an individual or an enterprise. For tax collection purposes, FIFO accept that the advantages that stay in stock are coordinated to the benefits that are most as of late bought or delivered. The FIFO technique pursues the rationale that to evade out of date quality, an organization would sell the most established stock things first and keep up the freshest things in stock. Despite the fact that the real stock valuation strategy utilized does not have to pursue the genuine progression of stock through an organization, a substance must almost certainly bolster why it chose the utilization of a specific stock valuation technique.
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