UOM - Unit of Measure

Published by MBA Skool Team, Last Updated: January 22, 2018

What is UOM - Unit of Measure?

It 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, meter etc.) in which we measure and manage different items. Different UOMs can be used for different transactions i.e. purchasing UOM will be different from storing UOM. E.g. we purchase steel in terms of tons but it can be used in square meter or inch etc.

The different kinds of UOM are as follows:

• Stocking UOM: It refers to the unit of measure that’s used to measure inventories in a warehouse. Stocking UOMs are used to measure goods involved in transactions like transfers, container management, picking, ordering, put away etc. It simplifies the warehouse operations.

• Ordering UOM: It’s used to order goods. It can be used for sales order as well as purchase orders.

• Shipping UOM: it’s used for shipping purposes and includes transactions like packaging, loading, unloading etc.

• Standard UOM: It refers to UOM that remain same for all operations mentioned above i.e. stocking, ordering and shipping.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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