Understanding SKUs in Inventory Management

The video tutorial introduces the concept of Stock Keeping Units (SKUs) and their importance in retail and inventory management. It explains how SKUs are used to track inventory, conduct stock takes, manage inventory shrinkage, and replenish stock. The tutorial also covers best practices for creating SKUs, such as using an alphanumeric system and splitting SKUs into parts for better categorization. By understanding and implementing SKUs effectively, businesses can improve inventory accuracy, reduce costs, and make informed product decisions.

What is a Stock Keeping Unit (SKU) primarily used for?

• Sales forecasting

• Customer feedback

• Inventory tracking

• Marketing campaigns

How do SKUs assist in inventory management?

• By setting product prices

• By tracking stock levels

• By predicting future sales

• By managing employee schedules

Why are SKUs important for conducting stock takes?

• They reduce product costs

• They help in marketing strategies

• They improve customer service

• They provide exact stock levels

What is inventory shrinkage?

• A rise in customer demand

• An increase in product prices

• A decrease in stock levels due to missing items

• A reduction in warehouse space

When should a business replenish its inventory?

• When sales targets are met

• When new products are launched

• When stock levels are low

• When stock levels are high

How can SKUs help in identifying best-selling product variants?

• By evaluating supplier performance

• By tracking customer reviews

• By analyzing sales data

• By monitoring social media trends

What is the role of SKUs in minimizing inventory holding costs?

• They increase storage space

• They help in setting reorder points

• They reduce product quality

• They enhance customer loyalty

What is a common practice when creating SKUs?

• Using only numbers

• Using customer names

• Using an alphanumeric system

• Using random letters

Why is it beneficial to split an SKU into two parts?

• To confuse competitors

• To simplify product grouping and identification

• To increase product prices

• To reduce production costs

What should be avoided when creating SKUs?

• Using color codes

• Using similar codes for different products

• Using alphanumeric codes

• Using unique identifiers