A Stock Keeping Unit (SKU) is a unique identifier assigned to each distinct product or item in a retailer's inventory. SKUs are used to track inventory, manage stock levels, and facilitate the ordering and replenishment process. Each SKU typically contains information about the product's attributes, such as size, color, style, and brand, allowing for precise identification and management. By using SKUs, businesses can streamline their inventory management, improve accuracy in tracking sales and stock levels, and enhance overall operational efficiency. This system helps in reducing errors, optimizing stock levels, and ensuring that the right products are available to meet customer demand.