DEFINING SKU

Definition of SKU’S (Stock keeping Units)

Warehousing item that is unique because of some characteristic (such as brand, size, color, model) and is therefore stored and accounted for separate from other items.

Usage of the SKU system is rooted in data management, enabling the company to systematically track their inventory or product availability, such as in warehouses and retail outlets. They are often assigned and serialized at the merchant level. Each SKU is attached to an item, variant, product line, bundle, service, fee, or attachment. All merchants using the SKU method will have their own approach to assigning the SKU system based on regional or national corporate data storage and retrieval strategies.

Successful inventory management systems assign a unique SKU for each product and also for its variants, such as different versions or models of product or different bundled packages including a number of related products. This allows merchants to track, for instance, whether blue shirts are selling better than green shirts.

Reference from wikipedia.org