A Stock Keeping Unit (SKU) is a unique identifier assigned to a specific product variant, such as size, color, or configuration, allowing detailed tracking and management within inventory systems. SKUs are the fundamental units for inventory control, enabling precise demand forecasting, order fulfillment, and replenishment planning.Managing SKUs effectively requires categorizing products based on sales velocity, profitability, and supply chain complexity. High-SKU environments present challenges in balancing inventory levels, requiring robust classification techniques like ABC or XYZ analysis to optimize stock allocation and reduce carrying costs.
