## FSN Inventory Classification (Fast, Slow, Non-moving)
FSN (also called FNS — Fast, Normal, Slow) classifies items by usage frequency / inventory turnover, not by value. It helps control stock by how often items actually move.
### The three categories
| Category | Meaning | Storage & action |
|---|---|---|
| Fast moving | High usage frequency | Kept near the issue point; stock frequently reviewed and replenished. |
| Slow moving | Occasional usage | Stored a bit further away; reviewed periodically for obsolescence; may be shifted to non-moving. |
| Non-moving | No recent usage | Kept for disposal; reported to management; provision for loss may be created. |
### Reasons items become slow / non-moving
- Lack of communication: production fails to tell stores about updated material requirements.
- Technological upgradation: new machines/processes make existing materials obsolete.
- No periodic review: inventories are not reviewed regularly, so outdated items accumulate.
### How to manage slow & non-moving inventory
- Timely identification: monitor regularly to detect such items early.
- Inventory turnover ratio: compare actual vs standard turnover to spot inefficiencies.
- Minimum level / JIT: use minimum-level control or JIT to cut excess stock.
- Management reporting: present variance reports to support decisions.