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"Par inventory" is optional service. The service helps the ordering personnel strengthen inventory control practices, thus eliminating fraud, waste, and abuse. The service is free to customers meeting the minimum order requirement.
PAR stands for "Periodic Automatic Replenishment." PAR level refers to the exact amount of product you should have in stock to meet demands. PAR levels are boundary markers in inventory levels that signal replenishment is necessary. If your PAR levels are set too low, you risk running out of stock. If your PAR levels are too high, you may have more money invested in stock than necessary. The ability to utilize a system that offers accurate and on-time availability for product information can mean the difference between meeting your performance objectives, and not being up to par.
The "PAR level" is called that because its inventories are kept at "par level." It is easier to call it a "PAR area", because it's not really a level so much as a cart or closet. Easier yet, "exchange cart" is almost self-explanatory instead of having a weird name like PAR level.
The name "PAR level" comes from the accounting term "par level", the latter meaning the level at which the stock is replenished. For example, par level for whole milk in my fridge is 1 liter. If I fall below that level, I go buy more. My par level of milk is 1 liter. If I lived in a hospital, my fridge would be called a PAR level.
PAR level has earned growing acceptance for their inherently low IT footprint. With little or no IT maintenance or no IT infrastructure, the self-service capabilities enable both any size, and any industry background to effectively participate in a procurement initiative without getting overwhelmed by technology and disparate formats. This advantageous to small/medium business inventory control management.