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For ordering and inventory management purposes, each item has a separate Stock Keeping Unit (SKU).
What is Inventory?
Inventory refers to all products, services, and consumables that a business holds with the intention of reselling them for profit.
Example: If a newsagent uses a vehicle to distribute newspapers to customers, only the newspapers are considered inventory. A car is considered an asset. Although there are other types of inventory, the four main types of inventory are maintenance, repairs and consumables, finished goods, work-in-progress, and raw materials and components.
A product or material in inventory is something that a company wants to profitably resell to its customers.
Tracking inventory from producers to warehouses and from those locations to the point of sale is inventory management, a key component of the supply he chain.
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