ECONOMICS

Detailed explanation-1: -FSN analysis is an inventory management technique. It is an important aspect in logistics. 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.

Detailed explanation-2: -FSN is one of the inventory management techniques and it is about segregating products based on their consumption rate, quantity, and the rate at which the inventory is used. Fast-moving inventory, as the name suggests, comprises the stock that moves quickly and needs to be replenished very often.

Detailed explanation-3: -The FSN analysis is based on the following parameters mentioned below: The consumption rate of a product: The average quantity of an item consumed or expended during a given time interval. The average stay in inventory: Reflects how long did a specific product take to get sold in a given period.

Detailed explanation-4: -ABC Model of Inventory Management is based on the Annual Consumption Value of the items. This only takes into account the cost and the consumption of the item.

Detailed explanation-5: -ABC analysis is an approach for classifying inventory items based on the items’ consumption values.