What is par level?

What is par level?

• A. A safety stock measure
• B. The current inventory level
• C. A purchasing method where each item has a level at which it is reordered
• D. A minimum order quantity

Answer: (C)

Par level is the defined target quantity you want to have on hand for each item so you can operate smoothly until the next delivery. It acts as a reorder trigger: when the on-hand amount reaches the par level, you place an order to bring stock back up to that level. This isn’t just the current stock you have, nor is it the minimum quantity you can order, and it isn’t simply extra safety stock. It’s the planned level used to decide when and how much to reorder for each item, helping maintain consistent availability and control purchasing.

Par level is the defined target quantity you want to have on hand for each item so you can operate smoothly until the next delivery. It acts as a reorder trigger: when the on-hand amount reaches the par level, you place an order to bring stock back up to that level. This isn’t just the current stock you have, nor is it the minimum quantity you can order, and it isn’t simply extra safety stock. It’s the planned level used to decide when and how much to reorder for each item, helping maintain consistent availability and control purchasing.