What is a par level?

Run out of oat milk at 10am and you lose sales and annoy regulars. Order twice what you need and it goes off in the fridge. A par level is the line between the two: how much should be on the shelf, so ordering becomes a sum instead of a guess.

The formula

Par level = average usage per day × days until the next delivery + safety stock

Safety stock covers a busier-than-usual day or a late delivery — often 10–20% of the usage.

A worked example

You use about 12 litres of milk a day and get deliveries every 3 days.

12 × 3 = 36 litres, plus 20% safety stock = about 43 litres.

If you count 15 litres on delivery day, you order 28.

Par level vs reorder point

They are often used to mean the same thing, but strictly:

• Par level — how much you want on hand after a delivery.
• Reorder point — the level at which you place the next order.

Either way, the point is that the number is decided once, and the order follows from the count.

Why it matters

• Fewer stock-outs on what sells.
• Less cash tied up in stock, and less wastage on what goes off.
• Anyone can place the order, not only the person who "just knows".

Common mistakes

1. Setting it once and forgetting it. Usage changes with the season and the menu.
2. One par for every day. A weekend may need a higher par than midweek.
3. Ignoring shelf life. Fresh produce needs a lower par and more frequent orders.

Tracking it in DUMA

Each stock item can have a reorder level for each location. DUMA flags items that fall below it, so low stock shows up before you run out, and the latest stocktake keeps the counts honest.