Par Levels

     For some; your menu may not change very often, if ever. For others; your menu may change daily.  For those who have a consistent menu, ordering is typically easier and more routine.  Some may even be able to assign PAR Levels to each product and then order the difference between the set PAR level and what is actually on-hand. The word PAR is the acronym for Periodic Automatic Replenishment and can really help expedite the process and even prevent both over ordering and under ordering.  If you know how much your operation needs consistently, setting PAR levels are an effective way to manage the purchasing process without running out of product or sitting on too much of one product.  As your business needs change, you change your PAR levels to reflect those needs.
     PAR levels work by maintaining a consistent level of inventory at all times. Without having to worry about a changing menu, you can easily track product usage and set accurate levels that you need to maintain within the operation. If your PAR level for a product is 6 cases and you currently have 3 cases on-hand, you would order 3 more cases.  A simple concept to understand and follow.  With PAR levels, you can teach anyone to walk through and create an order based on your standard levels and what is already in-house.  

     Though setting PAR levels is a convenient way to order and may help to prevent over ordering or under ordering, PAR levels may not be suitable for all products. This may be especially true if the product is used infrequently or if the operations menu changes regularly.  Additionally, your product needs may change based on either an anticipated increase or decrease in business and your level of ordering must change with the demands of the business.​