Implement a First-In-First-Out (FIFO) system

Version 1 - Last updated 23rd July 2025

Suppliers should implement a First-In-First-Out (FIFO) system when issuing chemicals and input materials from the stores to production based on the information of the purchase date and lot/batch numbers of a chemical.

FIFO system

Based on the information of the purchase date and lot/batch numbers of a chemical, the chemical stores department should implement a system of First-In-First-Out (FIFO) at the facility.

First-In-First-Out (FIFO) is an inventory method that assumes the first goods purchased are the first goods sold. In other words, older inventory will be issued and used before newer inventory. It also requires that the chemical containers be stored in the order of their date of purchase, so the chemical purchased first is also retrieved first

Example

If one lot of a chemical is purchased on 1 June and another lot is purchased on 15 June, then the FIFO system ensures that the lot purchased on 1 June is issued from the chemical stores and used up in production before the second lot that was purchased on 15 June.

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