What is a stock keeping unit (SKU)?

A stock keeping unit (SKU) is a unique identifier assigned to every distinct product and service that a company offers. This identification is crucial because it allows for accurate tracking of inventory levels, sales performance, and stock replenishment. Each SKU can be associated with specific characteristics such as size, color, style, and any variations that differentiate it from other products. By employing SKUs, businesses can streamline their inventory management processes, making it easier to locate, manage, and evaluate the performance of products, ultimately leading to better decision-making regarding purchasing and stock levels.

The other options do not accurately define what a SKU is. While supply chain efficiency and logistics management strategy are important concepts in inventory and supply chain operations, they do not pertain directly to the specific role of a SKU. Likewise, measuring inventory turnover is a financial metric rather than an identifier for products. Thus, understanding what a SKU is helps clarify its pivotal role in the broader context of inventory management.