MANAGEMENT

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: -What is FSN analysis? FSN stands for fast-moving, slow-moving and non-moving items. Essentially, this segments inventory into three classifications. It looks at quantity, consumption rate and how often the item is issued and used. Fast-moving items are items in your inventory stock that are issued or used frequently.

Detailed explanation-3: -Slow-moving items are goods or products with a low turnover rate and are stored in the warehouse for much longer period. Due to the slowness in selling the goods, the slow-moving items are store or take space for long.

Detailed explanation-4: -Slow-moving inventory is generally defined as stocks or products that sit in your storage room or warehouse (and have not moved) for a certain period of time.

Detailed explanation-5: -The items in the inventory can be classified as Fast-moving (F), Normal-moving (N), and Slow-moving (S) based on the consumption pattern or average stay of item in the warehouse as well as issue counts. F-items comprise products that transact in and out of stock most often and they have the highest consumption rate.