THE UTILIZING OF THE FIFO SYSTEM FOR ANALYSING AND DESIGN INVENTORY CONTROL WITHIN A COMMUNITY ENTERPRISE GROUP IN UDON THANI

Abstract

Every entity requires inventory to facilitate the seamless operation of its functions. It acts as a crucial connection between the production and distribution processes. The allocation of resources to inventories represents a major portion of current assets or working capital in the majority of enterprises. Therefore, maintaining effective control and management of inventories is crucial. This study aims to explore strategies for enhancing the efficient management of large inventories within community enterprises in Udonthani province. It proposes utilizing ABC analysis to classify products based on their annual turnover value into 3 groups: Group A, Group B and Group C, arranged in descending order of importance. This research will Implementing the 5S activities to improve the operations of the group. Subsequently, incorporating the FIFO (First In, First Out) system will benefit the organization by preventing the misplacement of components and the storage of outdated materials. Therefore, classifying inventory and inventory and implementing the FIFO inventory system enables inventory executives or responsible individuals within community enterprises to prioritize product orders. This allows them to establish policies for effective inventory control within each group, ultimately saving time and reducing unnecessary expenses. Consequently, this optimized approach contributes to maximizing benefits for community enterprise groups.