What is an example of a stock keeping unit (SKU)?

A stock keeping unit (SKU) is a specific identifier assigned to a distinct item in inventory management. It helps in tracking inventory levels, sales, and stock movements. The correct answer reflects a shirt available in multiple colors and sizes because it represents a unique SKU that can be differentiated based on its attributes. Each variation of the shirt (color and size) would have its own specific SKU to accurately track its stock.

Having multiple colors and sizes indicates that there are distinct variations of the product that need individual tracking. This is essential for inventory management, as it allows businesses to monitor which specific item is selling, which sizes need reordering, and other business decisions. This differentiation is crucial for effective stock management, leading to better customer satisfaction and efficient operations.

In contrast, a shirt in a single color would not encapsulate the breadth of inventory variations, making it less representative of a comprehensive SKU. A single category of items or a generic inventory listing would not provide the level of detail necessary to identify and manage specific products within an inventory system.