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FSN ANALYSIS

Whether in an online or offline mode of business, no one invests money in holding an inventory that doesn’t bring in revenues frequently.   Merchants need a moving inventory that gets sold quickly and regularly. FSN Analysis allows for managing inventory more efficiently by identifying dead stock and reducing its accumulation in the inventory.  

Fast-moving inventory is the stock of goods that moves quickly and has to be replenished very often.   It has an inventory turnover ratio of more than 3 and constitutes around 10-15% of the total inventory

Slow-moving inventory is the stock of goods that crawl slowly through the supply chain and has an inventory turnover ratio between 1-3. It is generally 30-35% of the total stock.

Non-moving inventory is the stock of goods that rarely move with a turnover ratio below 1 and makes 60-65% of the total stock.