FSN Analysis is part of Inventory Management in Logistics and Supply Chain Management System. In the case of spare parts management in inventory it is necessary to analyze the data based on several parameters such as the rate of issuing of spare parts, amount consumed annually, lead time, the price of single unit etc. The analysis is important because of the reason that controlling the inventory might not be same for all parts. Inventory control allows selectively controlling the number of items in stock.
The following are the major inventory analysis tools used in the industry
(1) FSN Analysis
(2) ABC Analysis
(3) VED Analysis
(4) SDE Analysis
(5) HML Analysis
The FSN Analysis is based on the rate of issue or rate of usage of spare parts and the alphabets F S and N stands for Fast Moving, Slow Moving and Non Moving items. The FSN classification system categorizes the items based on how frequently the parts are issued and how frequently they are used.
Usual classification of Items at Inventory can be classified based on the following criteria
Fast Moving – Items which are frequently issued from inventory which are more than once for a specific time period
Slow Moving – Items which are less frequently issued which might be once in a specific time period
Non-Moving – Items which are not issued from the inventory at all in a specific time period
The FSN classification system is extremely helpful in distributing spare parts which are kept near the dispensing are having items which belong to the fast-moving category. The items which fall into the non-moving category can be discontinued if the further scope of use is not expected. As companies in production for a longer period have a specific percentage of non-moving spare parts which are usually disposed at regular intervals. Selling the spare parts or reusing the same can be again in the capital which can be used for other uses.