What does the term "Stock Keeping Unit" (SKU) refer to?

The term "Stock Keeping Unit" (SKU) specifically refers to a unique identifier assigned to each distinct product or service. This identifier is crucial for inventory management, as it allows businesses to track stock levels, manage orders, and monitor sales for individual items easily. Each SKU represents a specific item, including its attributes like size, color, and style, which differentiates it from other items in inventory. This uniqueness makes it easier for companies to manage their products systematically and efficiently, streamlining processes for ordering, stocking, and selling.

The other options address different concepts in inventory and supply chain management. A standard measurement for inventory does not accurately encapsulate the role of an SKU. Surplus material refers to excess stock that is not required or used, which is not synonymous with the unique identification function of an SKU. Lastly, a classification system for suppliers relates to how vendors or sources of products are organized and does not pertain to the individual product identification that an SKU represents.