University of Central Florida (UCF) MAR3203 Supply Chain and Operations Management Practice Exam 2

In inventory management, SKU stands for Stock-keeping unit. This term is crucial because it refers to a unique identifier for each distinct product and service that can be purchased. Each SKU is tied to a specific item and helps businesses track their inventory efficiently. By assigning a distinct SKU to each product, organizations can monitor stock levels, manage reordering processes, track sales, and analyze product performance more accurately.

In contrast, the other options do not accurately reflect the standard terminology used in inventory management. "Standard kit unit" could refer to a packaged set of products but does not encompass the broader concept of inventory management. "Service keeping unit" is not a recognized term in the field and suggests a focus on services rather than tangible products. "Sales key unit" also lacks recognition as a defined term in inventory management. Therefore, the only correct and widely accepted interpretation of SKU is Stock-keeping unit.