Inventory

Par Level & Reorder Calculator

How many bottles should I be holding so I do not run out or tie up cash?

Par level covers usage between deliveries plus the lead time to get more plus a cushion for a busy week. Below that you run out; well above it you have cash sitting on a shelf.

Your figures stay here. The calculator runs on this device; the share link stores its numbers after the # in the URL.
Worked answer48.6See it ↓
01

Your numbers

A worked example is already loaded. Replace any field with the figures from the source named beside it.

Average usage per dayPOS depletion report or count history
4.5 units

Bottles, cases, or units used on an average day. Use your own unit consistently.

Days between deliveriesDelivery schedule
7 days

How often this supplier actually delivers.

Order lead timeSupplier terms
2 days

Days between placing the order and it arriving.

Safety stockYour own judgement
20%

Cushion for a busier than average week or a late delivery.

On hand now (optional)Shelf count
19 units

Optional. Tells you what to order today.

Cost per unit (optional)Invoice
$27.50

Optional. Shows the cash tied up at par.

02

The answer

Par level

48.6

9 days of cover plus 20% safety stock

  • Order todayUnits to bring you back to par.29.6
  • Reorder pointPlace an order when you drop to this level.10.8
  • Days of cover at par10.8 days
  • Usage between deliveries31.5
  • Safety stock8.1
  • Cash tied up at par$1,337
  • Cost of today's order$814.00
03 Show the arithmetic
Cover days = days between deliveries + order lead time
Par level = average daily usage × cover days × (1 + safety stock %)
Reorder point = average daily usage × lead time × (1 + safety stock %)
Order quantity = par level − units on hand
04 What the answer leaves out
  • Average daily usage hides the weekend. For a venue where Friday and Saturday carry the week, set par against peak usage rather than the average, or you will run dry at 11pm.
  • Par levels need resetting when the menu, the season, or a promotion changes what sells.
Continue if it helps

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