Fast - slow and non moving analysis, Financial Accounting

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FSN Analysis:

In this method inventory items are classified as per the usage/consumption pattern. They are categorizing as:

  • Fast Moving (F) items are stored in huge quantities as their usage rate is very high. Special attention is specified to the inventory level of these categories of items.
  • Slow Moving (S) items are not often needed by the production department; thus moderate quantities along with moderate supervision are kept.
  • Non Moving (N) items are rarely needed through the production department, thus small number of items is kept in stores and less supervision is needed for these kinds of inventory items.

Under this method the focus is on the frequency of usage of a specific item.


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