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SKU Proliferation
Definition
The rapid increase in the number of SKUs within a category or brand lineup, often driven by line extensions, flavors, pack sizes, or seasonal items. While intended to capture more consumer demand, excessive SKU proliferation can strain supply chains, reduce shelf efficiency, and dilute productivity.
How It's Calculated
Example
A beverage brand expands from 6 flavors to 18 in two years, creating SKU proliferation that complicates forecasting and reduces shelf space per item.
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