In the context of inventory, what does SKU stand for?

The term SKU stands for Stock Keeping Unit. This designation is crucial in inventory management as it allows businesses to track and manage their inventory more efficiently. An SKU is a unique identifier assigned to each product offered by a retailer or manufacturer, which can encompass various attributes such as size, color, and type. By using SKUs, companies can easily keep track of stock levels, sales trends, and reorder points, thus facilitating better inventory control.

This systematic approach aids in minimizing errors during stock counts and ensures that the right products are available at the right times, leading to improved customer satisfaction. The other options do not accurately reflect standard terminology used in inventory management, making Stock Keeping Unit the clear and correct choice.