F-S-N Analysis: Criterion employed: Rate of consumption of items in terms of rate of their issue from stores.
In F-S-N analysis, 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
a)Â Â Â Â Â The items to be considered to be “active” may be reviewed regularly on more frequent basis.
b)Â Â Â Â Â Items whose stocks at hand are higher as compared to their rates of consumption.
c)Â Â Â Â Â Non-moving items whose consumption is “nil” or almost in significant.
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