UOM (Unit of Measure) - Meaning, Importance, Types ...

UOM stands for Unit of Measure. UOM are used to quantify the inventory items and enables to track them. It's a physical unit (like kg, dozen, ... MBASkool Install Courses HomeCoursesConceptsSWOTMarketingStrategyPESTLEFiveForcesTrendsArticlesQuizzesGDTopics Concepts›OperationsandSupplyChain› UOM(UnitofMeasure)-Meaning,Importance,Types&Example PublishedbyMBASkoolTeam,LastUpdated:August15,2021 WhatisUOM(UnitofMeasure)?UOMstandsforUnitofMeasure.UOMareusedtoquantifytheinventoryitemsandenablestotrackthem.It’saphysicalunit(likekg,dozen,meteretc.)inwhichwemeasureandmanagedifferentitems.DifferentUOMscanbeusedfordifferenttransactionsi.e.purchasingUOMwillbedifferentfromstoringUOM.E.g.wepurchasesteelintermsoftonsbutitcanbeusedinsquaremeterorinchetc.Inthisarticle:TypesofUOMImportanceofUnitOfMeasure(UOM)ExampleofUOMTypesofUOMThereare4typesofUOMareasfollows: StockingUOMItreferstotheunitofmeasurethat’susedtomeasureinventoriesinawarehouse.StockingUOMsareusedtomeasuregoodsinvolvedintransactionsliketransfers,containermanagement,picking,ordering,putawayetc.Itsimplifiesthewarehouseoperations. OrderingUOMIt’susedtoordergoods.Itcanbeusedforsalesorderaswellaspurchaseorders. ShippingUOMit’susedforshippingpurposesandincludestransactionslikepackaging,loading,unloadingetc. StandardUOMItreferstoUOMthatremainsameforalloperationsmentionedabovei.e.stocking,orderingandshipping. ImportanceofUnitOfMeasure(UOM)UnitofMeasureisextremelyimportantininventorymanagementasitquantifiestheinventoryitemintermswhichallstakeholderswouldunderstand.If2partiesaretransactingonaninventoryitem,UOMdefineshowmuchandinwhatunitthequantityisexpected.Therewouldbenoconfusionormiscalculationintermsofprice.TheratesareusuallydefinedforaparticularUOMe.g.5$perkgor10eurosperdozen.IfthereisnoUOMclearlydefinedintheorderorquotes,itwilltakelotofadministrativeefforttocommunicatetheexactquantity.AlsoUOMsneedtobestandardizedtomakesurethatallstakeholdersespeciallyacrosscountries.SomecountrymightuseKilogramsorkilometersandothercountrymightusepoundsormiles.ExampleofUOMLetustakeanexampleofretailerorderinginventoryforwheattobesoldtoendcustomers.NowitisveryimportantforretailertodefinetheUOM.Ifhesays200andassumesthatthedistributorknowscanleadtoissues.Sowhileordering,itshouldbemandatorytoclearlydefineUOMasKgsandmakesurethattheratesareselectedasperkgtomakesurethatthereisnoerrorandissuesinbusiness. Hence,thisconcludesthedefinitionofUOM(UnitofMeasure)alongwithitsoverview.Thisarticlehasbeenresearched&authoredbytheBusinessConceptsTeam.Ithasbeenreviewed&publishedbytheMBASkoolTeam.ThecontentonMBASkoolhasbeencreatedforeducational&academicpurposeonly.Browsethedefinitionandmeaningofmoresimilarterms.TheManagementDictionarycoversover2000businessconceptsfrom5categories.ContinueReading: «Underutilization ValueDeliveryNetwork» ImportantDefinitions:OperationsManagementEconomicOrderQuantity(EOQ)TotalQualityManagement(TQM)DistributionChannelManagementInventoryManagementDefinitionCategories:Marketing&StrategyTermsHumanResources(HR)TermsOperations&SCMTermsIT&SystemsTermsStatisticsTermsSharethisPageon: WhatisMBASkool?AboutUsMBASkoolisaKnowledgeResourceforManagementStudents,Aspirants&Professionals. BusinessCoursesMarketingOperations&SCMHumanResources Quizzes&Skills ManagementQuizzesSkillsTestsQuizzestestyourexpertiseinbusinessandSkilltestsevaluateyourmanagementtraits RelatedContent MarketingStrategy Motivation InventoryCosts SalesQuota QualityControl TrainingandDevelopment Customer CapacityManagement WorkLifeBalance MoreDefinitions AllBusinessSections Courses BusinessConcepts SWOT&BrandAnalysis MarketingStrategy&Mix PESTLEAnalysis FiveForcesAnalysis TopBrandLists Articles GDTopics WriteforUsWrite&ContributeBusinessContentSubmitContent HomeAboutUsContactUsTermsPrivacyPolicyContributeContentCollegesMedia Followuson 2011-2022|MBASkool.com