FSN Analysis using K Means Clustering

Abstract

Inventory management is responsible for planning, controlling and movement of stock within and outside the organization. It plays a huge role in determining the financial and operational health of any organization, considering its significant share in OPEX. Proper inventory control helps in maintaining right amount of stock of materials, etc. thereby making effective use of working Capital.

There are several inventory analysis techniques such as ABC, XYZ, VED, FSN, HML etc. used by the companies. In this study, focus is on FSN Analysis. This paper goes through the FSN (Fast, Slow, and Non-moving) inventory analysis technique using machine learning algorithm (K-Means clustering) of an online food delivery business..