How to do FSN

  How to do FSN/FNS analysis  By doing FSN analysis materials can be classified based on their movement from inventory for a specified periodItems are classified based on consumption and average stay in the inventory Higher the stay of item in theinventory, the slower would be the movement of the materialF ± Fast MovingS- Slow Moving N- Non moving   Sometimes the terms FNS is also being used, whereF ± Fast Moving N- Normal MovingS- Slow MovingThere following steps in doing the FSN analysis   Calculation of average stay and the consumption rate of the material in warehouseFSN Classification of materials based on average stay in the inventoryFSN Classification of the material based on consumption rateFinally classifying based on above FSN analysisProcessLet¶s take 10 materials for analysis Following is the analysis of SKU01 Period of analysis is 15 daysCalculation of consumption rate and average stay of the material in the inventory  Opening Balance : 50Average stay of the material = Cumulative No of Inventory Holding Days/( Total quantityreceived + Opening Balance) =1161/115 = 1009 Days  Consumption Rate = Total Issue Qty/Total Period Duration =46/15 = 306 Nos/Day   Now list down the materials with average stay and consumption rate    Now Carry out the FSN analysis on the basis of Average Stay only as below in MS Excel as below by sorting down in descending order of Average stay Every company has its policy for defining FSN Here FSN has been taken as F--10%, S-20%, and N -70% Now carry out the FSN classification only on the basis of consumption rate similarly as above Now carry out final classification by combining both as under   Related Words: FSN analysis, FNS Analysis, Identification of fast moving, Slow moving andnon moving inventory, Inventory Control using FSN analysis, Inventory AnalysisPosted by at7:35 AM Labels:Inventory Management