First in First Out (FIFO)

  First in First out is a method used in inventory valuation for accounting purposes.  The method advocates the practice of using the oldest inventory item first, hense the name "first in" "first out."  The principle is also applicable in maintaining precise sequence during and through the production of items because it ensures that the first part into a process or inventory location is also the first part to be used.  The FIFO lane is one method of controling and regulating a pull system that is between two disconnected (decoupled) processes.  

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