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Par level is the fixed quantity of an item that must be kept on hand to support daily operations. Setting an optimum par level is part of stock management. Set it too high and you incur more costs in storage. Set it too low and you risk turning customers away. Most inventory software will trigger an alarm when the par level is reached, e.g. in a restaurant, when stock falls below the set par levels once menu products are prepared, a notification is sent to generate a Purchase Order to replenish that item.

2007-12-04 00:40:14 · answer #1 · answered by Sandy 7 · 0 0

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