SKU stands for stock keeping unit. It is a valuable inventory management tool that assigns a unique identifier to items that are for sale. It usually contains all the unique characteristics that distinguish an item from other item types. The stock keeping unit is sometimes represented by a bar code, just like the one you can see in supermarket items. It is unique for each company, and each firm creates its own way of generating their Stock Keeping Unit, but they are typically composed of eight alpha-numeric digits. The SKU is similar to a UPC (Universal Product Code), which is a unique code that identifies an object. So, for example, a bag of chips sold at both Albert’s Superstore and Bob’s Mart, will have the same UPC but different SKU.
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