FSN analysis

FSN analysis is an inventory management technique. The items are classified according to their rate of consumption. The items are classified broadly into three groups: F – means Fast moving, S – means Slow moving, N – means Non-moving. The FSN analysis is conducted generally on the following basis:

• The last date of receipt of the items or the last date of the issue of items, whichever is later, is taken into account.
• The time period is usually calculated in terms of months or number of days and it pertains to the time elapsed seems the last movement was recorded.

FSN analysis helps a company in identification of the following

• The items considered to be “active” may be reviewed regularly on more frequent basis.
• Items whose stocks at hand are higher as compared to their rates of consumption.
• Non-moveing item have zero consumption are generally absolutely.