What do stock keeping units (SKU) represent in inventory management?

Stock keeping units (SKUs) play a crucial role in inventory management as they serve as unique identifiers for each distinct item in inventory. Each SKU is assigned to a specific product variant, which may differ by attributes such as size, color, or style. This unique identification allows businesses to track inventory levels, manage stock, and facilitate accurate ordering and replenishment processes.

By utilizing SKUs, organizations can streamline their inventory management systems, enabling them to monitor sales trends, identify stockouts, and analyze purchasing patterns more effectively. This level of granularity supports better decision-making regarding inventory control, ultimately aiding in improving overall customer satisfaction and operational efficiency.

In contrast, the other answer choices refer to different aspects of inventory management. Standardized units of measurement for inventory involve tracking quantities using uniform metrics, while categorizing products based on sales performance relates to analyzing product performance but does not directly address the identification of individual items. Logistical codes for supply chain tracking pertain to broader logistics and transportation aspects, rather than the uniqueness and specificity provided by SKUs in inventory.