7 Techniques Inventory Control

First-in, first-out (FIFO): This method involves using the oldest items in inventory first. This helps to ensure that items do not expire before they are used.

Last-in, first-out (LIFO): This method involves using the most recently received items in inventory first. This can be useful for items that have a short shelf life.

ABC analysis: This method involves classifying items based on their importance. "A" items are considered most important and are closely monitored, "B" items are considered less important and are monitored less closely, and "C" items are considered least important and are monitored the least.

Economic order quantity (EOQ): This method involves determining the optimal order quantity for an item that balances the cost of placing an order with the cost of carrying inventory.

Reorder point: This method involves setting a specific inventory level for an item at which an order for more will be placed.

Just-in-time (JIT): This method involves ordering items just in time to be used, rather than keeping large inventory on hand.

Kanban: This method is a pull system of inventory control which is used to signal the need to move materials through the production process.