Manufacturing Terms

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Stock Keeping Unit (SKU)

manufacturing

A Stock Keeping Unit (SKU) is a unique identifier assigned to a product for inventory management and tracking purposes.

expanded

A Stock Keeping Unit (SKU) refers to a specific alphanumeric code used to identify, track, and manage inventory for each distinct product item in a manufacturing or retail environment. SKUs facilitate efficient inventory control, order processing, and sales analysis by providing a distinct identity for each item, differentiating products based on characteristics like size, color, or model.

examples

The SKU 'ABC1234-56-L' refers to a large (L) blue shirt from the 2023 fall collection of the 'AlphaWear' brand.

Commonly used in clothing and fashion retail, SKUs such as this help quickly locate and track inventory in large warehouses. They are used in inventory databases and integrated into point of sale (POS) systems to manage order fulfillment.

The SKU 'PRT-450G-AE23' identifies a 450 g (0.99 lb) pack of fast-curing epoxy resin produced by 'ProResin Industries'.

This SKU is utilized in manufacturing facilities where precise inventory of raw materials is essential for production continuity. Each SKU allows the facility to manage supply levels accurately and reorder inventory as needed.

related terms

Statistical Process Control (SPC)
A method of quality control using statistical techniques to monitor and control a process.
Kanban
Kanban is a workflow management method for visualizing and controlling production processes in a manufacturing system.
Substrate
A substrate is a base material on which products are constructed or functional layers are applied in manufacturing.
Statistical Quality Control (SQC)
A set of statistical techniques used to monitor and control a process to ensure that it operates at its full potential.
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI) is a supply chain strategy where the supplier is responsible for managing and replenishing inventory based on agreed-upon parameters.