Par Level: What It Means and How to Set It
A par level is the minimum quantity of an item you want to keep in stock at all times. When stock falls to the par level, it’s time to reorder. It’s a simple, powerful tool for preventing stockouts without over-ordering.
What does par level mean?
Par level (or “par stock”) is the baseline quantity that should always be on hand to cover demand until your next delivery arrives. Set it per SKU based on how fast the item sells and how long your supplier takes to restock.
How to set a par level
A practical formula: par level = (average daily sales × supplier lead time in days) + safety stock. The safety-stock buffer covers unexpected demand spikes or supplier delays.
Par level example
If you sell 20 units a day, your supplier takes 5 days to deliver, and you want a 50-unit buffer, your par level is (20 × 5) + 50 = 150 units. When stock hits 150, you reorder.
Par level vs reorder point
The two are closely related: the par level is the minimum you want to hold, and reaching it triggers a reorder — so in practice it acts as your reorder point. Inventory software can monitor par levels and alert you (or reorder automatically) the moment stock dips below them.
Frequently asked questions
What is a par level in inventory? The minimum stock quantity you want on hand at all times; hitting it triggers a reorder.
How do I calculate par level? Multiply average daily sales by supplier lead time, then add a safety-stock buffer.
Related reading: The complete inventory management guide.
