FSN Analysis: Fast, Slow & Non-Moving Inventory
Definition
FSN analysis classifies inventory items as Fast-moving, Slow-moving or Non-moving according to how often and how much they are issued over a period, so that stores can focus replenishment on fast items and clear the rest.
| Term | FSN analysis |
|---|---|
| In Hindi | FSN विश्लेषण |
| Area | Purchase & stores |
| Search phrase | FSN analysis |
| Try it | ABC analysis |
FSN विश्लेषण — हिंदी में अर्थ
FSN विश्लेषण स्टॉक को तेज़ी से चलने वाला (Fast), धीमा चलने वाला (Slow) और न चलने वाला (Non-moving) में बाँटता है — इस आधार पर कि अवधि में कितनी बार और कितना माल जारी हुआ — ताकि स्टोर तेज़ आइटम पर ध्यान दे और बाकी को निपटाए।
How to do FSN analysis
Take 12 months of issue data from the stock ledger. For each item, count how many months it was issued in, or calculate its consumption rate (quantity issued ÷ average stock). Rank the items and set thresholds that fit your business — a common rule is: issued in 8 or more of the last 12 months = Fast; issued in 1–7 months = Slow; not issued at all in 12 months = Non-moving.
Base it on issues, not purchases — an item bought every month but sitting unused is not fast-moving.
What to do with each class
Fast: keep close to the point of use, set reorder levels and safety stock, negotiate rate contracts. Slow: reduce order quantities, buy against demand, review every quarter. Non-moving: check if it is a critical spare (see VED) before scrapping; otherwise return to the supplier, use in another product, sell or write off. FSN is often combined with ABC analysis so a costly non-moving item gets attention first.
Example
A fabrication store with 1,200 items finds 310 Fast, 540 Slow and 350 Non-moving. The non-moving items hold ₹18 lakh — 22% of stock value — most of it left over from two cancelled export orders.
Related tools and guides
Frequently asked questions
What is the full form of FSN?
Fast-moving, Slow-moving and Non-moving.
What is the difference between ABC and FSN analysis?
ABC ranks items by annual consumption value; FSN ranks them by how often they move. Using both shows where money is stuck.
How long before an item is non-moving?
Commonly 12 months with no issue, though some businesses use 6 or 24 months depending on their product cycle.
Should non-moving stock always be scrapped?
No. Critical spares may move rarely but must be kept. Check VED classification first.
Related terms
- Bin cardA bin card is a record kept at each storage bin or rack by the storekeeper, showing the quantity of an item received, issued and in balance after every transaction. It records quantities only, not values.
- InventoryInventory is the stock of goods a business holds to make or sell — raw material, work in progress, finished goods and consumables. In Hindi it is माल सूची or भंडार.
- Lead timeLead time is the time from starting a process to finishing it — for purchase, from placing an order to receiving the goods; for a customer, from their order to delivery.
- MOQ (Minimum Order Quantity)MOQ stands for Minimum Order Quantity — the smallest quantity a supplier will accept in one order for an item, set so that its own setup, packing and freight costs are covered.
- ProcurementProcurement means obtaining the goods and services a business needs — from identifying the need and choosing a supplier to ordering, receiving and paying. In Hindi, procurement means खरीद or प्रापण.
- RFQ (Request for Quotation)RFQ stands for Request for Quotation — a document a buyer sends to several suppliers asking for their price and terms for specified items and quantities.