Essay on New method the FIFO strategy for the management of inventory

According to the provided case study, Woolworths is facing issues in the inventory management. The company requires extra sources for storing and keeping the things. Supply chain management includes an operation of transportation and distribution centres (Suryavanshi, 2016). The company is looking for new inventory management strategies and methods that consider logistics, operating the transportation, services of goods transfer, and services of employees. The effective inventory management system is required to manage the whole inventory. There are different inventory management techniques such as just in time inventory management, batch tracking, reorder point formula, Last in first out, first in last out, and safety stock inventory. In the present situation, the best strategy is First in first out (FIFO) (Shopify. com, 2018).

Why it is relevant of FIFO strategy for the management of inventory

FIFO is an important principle of inventory management, using this strategy will enable Woolworth to extract the old inventory and get sold it first. The newest stock remains to save and it is highly important for perishable products because till the end of unsellable spoilage it works to manage the inventory and space in the warehouse (Jaber, 2009).

 Expected benefit of FIFO strategy for the management of inventory

Use of FIFO strategy for the management of inventory is proved useful for the management of the whole inventory and to produce space required in the workplace or warehouse. The idea is especially good for non-perishable products. Consider if the boxes of material or products are always sitting at the back there are higher possibilities to get worn out. Besides that, it will lose the well-required features and packaging design. In the meantime, the design and features of packing often change. It can reduce the possibilities of getting obsolete. To manage the FIFO system in Woolworths the management is required to ensure management of the FIFO system and to organize the warehouse. In the typical meaning, adding new products from the back can reduce the chance of updating the services. The management will ensure that the products kept in the warehouse will remain in the front line of the store (Suryavanshi, 2016).

 Major lessons learnt of FIFO strategy for the management of inventory

In the present work, the main consideration was to identify a method that can be used to overcome the issues faced by Woolworth in the supply chain management and space in the warehouse. The report suggested a FIFO system as one of the best alternatives. The FIFO strategy will help the company to fulfil the aim (Shopify. com, 2018).

References of FIFO strategy for the management of inventory

Jaber, M. Y. (2009). Inventory Management: Non-Classical Views. CRC p.

Shopify. com. (2018). You're Probably Losing Money By Not Using These 8 Inventory Management Techniques. Retrieved from www.shopify.com: https://www.shopify.com/blog/inventory-management

Suryavanshi, D. (2016). Nixie the Mermaid and the Power of Love. notion press.