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Multi-SKU Forecasts

In: Demand Forecasting for Inventory Control

Author

Listed:
  • Nick T. Thomopoulos

    (Illinois Institute of Technology)

Abstract

An sku is an abbreviation for the term stock-keeping-unit that identifies an item being in the inventory at a stocking location. Could be a part number, a product number, a style number, so forth. Should a model of a certain tool be in stock at a dealer, it is an sku at that dealer. If the same model is in stock in 1000 dealers, it is an sku in each of the 1000 dealers. It is also an sku at each distribution center that stocks the model. A truck parts dealer typically has 15,000 skus and a truck distribution center may have 100,000 skus. A shoe store in the mall may have 2000 skus in shoes alone, since each style by size and width is a separate sku. Forecasts are needed for each sku (usually monthly) to use in the inventory stocking computations.

Suggested Citation

  • Nick T. Thomopoulos, 2015. "Multi-SKU Forecasts," Springer Books, in: Demand Forecasting for Inventory Control, edition 127, chapter 7, pages 89-106, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-11976-2_7
    DOI: 10.1007/978-3-319-11976-2_7
    as

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