Par Level

Definition:
Par Level is the ideal quantity of a product you aim to keep in stock at all times. It represents the baseline amount needed to meet demand without overstocking.

Formula:
Par Level = (Average Daily Usage × Delivery Lead Time) + Safety Stock

In Context:
Par levels are foundational to inventory management. They help bar managers avoid stockouts, reduce waste, and streamline ordering. In Spec, users set par levels for each product, and the platform uses these to generate suggested orders automatically after a Stock Count.

Par levels should be reviewed regularly — especially for seasonal products, rotating menus, or high-volume items — to stay aligned with real-world usage.

Example:
If you go through 6 bottles of tequila a week and your distributor delivers once weekly, you might set a par of 7 or 8 bottles to account for usage plus a buffer.

Pro Tip:
Setting par levels too high leads to Dead Stock; setting them too low leads to missed sales. Spec makes it easy to adjust par levels dynamically based on real usage trends over time.

Related Terms:

• Stock Count

• On Hand

• Inventory Value

• Reorder Point

• Dead Stock