What does SKU stand for in inventory management?

In inventory management, SKU stands for Stock Keeping Unit. This term refers to a unique identifier that is assigned to a specific product or item in order to track inventory levels, sales, and management processes effectively. Each SKU is associated with a certain item that may vary by size, shape, color, price, or any other distinguishing characteristic, making it essential for businesses to manage their stock accurately. By utilizing SKUs, companies can streamline their inventory management, optimize stock levels, and improve overall operational efficiency. This system of classification helps in counting inventory and analyzing sales trends, ultimately leading to more informed purchasing and stocking decisions.