Analysis of the Application of the First In First Out (FIFO) Method on Operational Management Efficiency

Abstract

This study analyzes the application of the First In First Out (FIFO) method in improving operational management efficiency. Using a quantitative approach with survey methods and financial data analysis, this research was conducted in manufacturing companies in East Java. The results show that the implementation of FIFO has a significant positive effect on inventory management efficiency, reduces waste, and improves cost accuracy. However, challenges were identified in system implementation and employee training. These findings contribute to operations management literature by providing empirical evidence of FIFO's impact on operational efficiency in developing economies. The study recommends proper training and system integration to maximize FIFO benefits.