What are Par Levels in Inventory?

Par levels are the minimum amount of inventory that should be kept on hand in order to meet customer demand. Par levels are determined by analyzing customer demand and the amount of time it takes to restock inventory.

Benefits of Using Par Levels

• Reduce Overstocking: Par levels help to ensure that you don't overstock your inventory, which can lead to spoilage and waste.
• Reduce Understocking: Par levels also help to ensure that you don't understock your inventory, which can lead to lost sales.
• Save Time: By having par levels in place, you can save time by not having to constantly monitor inventory levels.
• Save Money: By having par levels in place, you can save money by not having to purchase more inventory than necessary.

How to Calculate Par Levels

Par levels can be calculated by analyzing customer demand and the amount of time it takes to restock inventory. You should also consider the cost of restocking and the cost of storing inventory.

Conclusion

Par levels are an important tool for managing inventory and ensuring that you have the right amount of inventory on hand to meet customer demand. By having par levels in place, you can save time and money by not having to purchase more inventory than necessary.