A Stock Keeping Unit (SKU) is a unique identifier assigned to a specific product or item in inventory management. It helps businesses track stock levels, sales, and product variations, such as size or color. Each SKU is typically represented by a combination of letters and numbers, making it easy to categorize and manage products efficiently. SKUs are essential for retailers and warehouses, as they streamline the process of inventory control. By using SKUs, businesses can quickly identify products, monitor stock movement, and analyze sales trends, ultimately improving operational efficiency and customer satisfaction.