Par stands for Periodic Automatic Replenishment. The par level system is used to ensure businesses don’t run out of products or order too much of a specific item.
The par level is the minimum and maximum quantity limit for a specific inventory item. When the amount of an inventory item approaches the minimum level, the item should be reordered. The optimal quantity level, on the other hand, keeps businesses from overordering an item in stock.
Restaurant owners use the par level system to reduce food waste, save costs, and keep better track of inventory.