Selective Inventory Control Using ABC And FSN Analysis in Retail Sector: A Case Study

Abstract

Abstract: Inventory is the most important assets of any Enterprises whether it is micro, small or medium. The efficient use of selective inventory control model will result high flexibility and control over surplus and deadstock inventory. The aim of this study is to identify various factors that affect the enterprises performance in urban region. The study is conducted in A2Z Pharmacy store in an urban region. Data that has been collected is of primary type and has been collected from the database of the pharmacy store. ABC and FSN analysis methods are used on 190 types of medicine. ABC-FSN matrix is prepared using ABC and FSN combined analysis. On the basis of combined analysis and priority matrix there are three sub-categories in which some sub-category element has to be eliminated by anyhow and some sub-category element has to be maintained with minimum stocks (i.e. safety stock) and some sub-category elements has to be maximised or maintained. Keywords: Inventory management, Selective control model, Pharmacy, Retail sector, ABC analysis, FSN analysis, ABS - FSN matrix, Urban region