Par level

Par level

A par level is the quantity of an item you want on hand at the moment you reorder it, set so that you do not run out before the next delivery lands.

How to calculate one

Par is usage over the lead time, plus a buffer:

par = (average daily usage x lead time in days) + safety stock

Butter used at 2 kg a day, from a supplier who delivers five days after an order, needs 10 kg on the shelf when the order goes in. Add three days of cover as safety stock and the par is 16 kg.

Size the safety stock from how variable the two inputs are, not from a flat percentage. A steady item from a reliable supplier needs almost none; an unpredictable one needs more.

The two things that override the calculation

Shelf life caps it. If the calculated par exceeds what you can use before the item expires, the answer is a more frequent order, not a bigger one.

Supplier minimums can force it up. A minimum order quantity above your calculated par leaves you holding more than you wanted, which is a shelf life question before it is a cash one.

Revisit pars seasonally. A par set in a quiet February starves a December.

ibakepro tracks stock against pars per item. See pantry and stock.