FSN analysis is an
inventory
Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.
Inventory management is a discipline primarily about specifying the sha ...
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. The FSN analysis is conducted generally on the following basis:
*The last date of
receipt
A receipt (also known as a packing list, packing slip, packaging slip, (delivery) docket, shipping list, delivery list, bill of the parcel, manifest, or customer receipt) is a document acknowledging that a person has received money or proper ...
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 since 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
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a compan ...
s at hand are higher as compared to their rates of consumption.
*Non-moving item have zero consumption are generally absolutely.
Goods (economics)
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