Fast, Slow, and Non-Moving (FSN) analysis is a technique used to classify inventory based on its consumption rate or turnover velocity. This classification helps organizations to manage their inventory more effectively by focusing on items that have high turnover (Fast-moving), require special attention (Slow-moving), or have low or no demand (Non-moving). Here's how to conduct FSN analysis on inventory:-

FAST (F) this category includes consumables and wear items. Classification to be done via identifying items which have been issued on more than 4 instances per year(Calculated based on consumption over last 3 years). Slow (S) this category includes spares with moderately lesser demand. Spares issued less than or equal to 4 times per year (Calculated based on consumption over last 3 years) to be included in this category. NON – Moving (N) : this category comprises spares which have seen no usage in the recent past. Spares not issued at all over last 3 years will be classified as NON-moving New materials added to be considered in slow as per the above strategy.