Par stock is the level of an item you keep on hand to cover demand until the next delivery. The reorder point — when to buy more — equals (average daily usage × supplier lead time in days) + safety stock. Set these right and you stop the 8pm “we’re out of paneer” and the fridge full of over-bought stock wilting toward the bin at the same time.
Par level vs reorder point
The two terms get muddled. Par level is the target quantity you want to have after each delivery — enough to cover you comfortably to the next one. The reorder point is the trigger: the stock level at which you place the next order so it arrives before you run out. Par is the destination; reorder point is when you set off.
The reorder-point formula
Reorder point = (average daily usage × lead time in days) + safety stock.
If you use 8 kg of paneer a day, your supplier takes 2 days to deliver, and you hold 4 kg of safety stock, your reorder point is (8 × 2) + 4 = 20 kg. When stock hits 20 kg, you order. Lead time is the whole gap from placing the order to it being usable — including weekends and the supplier’s own delays, not the optimistic version.
Setting safety stock sensibly
Safety stock is your buffer against the two things the formula assumes away: demand that spikes (a busy weekend, a big table) and deliveries that slip. How much you hold depends on two questions:
- How variable is demand? A steady dry good needs little buffer; a weekend-spiking fresh item needs more.
- How bad is a stockout? Running out of your signature dish’s key ingredient is a crisis; running out of a garnish is not. Buffer the critical items harder.
Perishables complicate this — more safety stock means more spoilage risk. For fresh items, prefer more frequent, smaller deliveries over big buffers.
Perishable vs dry goods need different rules
Dry and frozen goods tolerate generous pars — buy in bulk, hold safely, reorder rarely. Fresh produce, dairy and proteins do not: hold too much and you feed the bin. The right move for perishables is tighter pars with shorter lead times, which usually means a closer or more frequent supplier rather than a fuller fridge. Review pars seasonally, because usage shifts with the menu and the calendar.
Par Stock & Reorder Point Calculator
Work out the par level and reorder point for any ingredient from daily usage, supplier lead time and safety stock. Stop running out mid-service.
Step by step
Set a reorder point and par level for any item.
- Measure average daily usage. Use a few weeks of real consumption, not a guess.
- Confirm supplier lead time. Count the full time from order to usable stock, including weekends and typical delays.
- Set safety stock. Buffer more for variable demand and critical items; less for steady, non-critical ones.
- Calculate the reorder point. Reorder point = (daily usage × lead time) + safety stock. Order when stock hits it.
- Review seasonally. Re-check pars when the menu or demand pattern changes.
Frequently asked questions
What is par stock in a restaurant?
Par stock is the level of an ingredient you aim to keep on hand to comfortably cover demand until your next delivery. It sets how much you top up to each time you order.
How do I calculate a reorder point?
Reorder point = (average daily usage × supplier lead time in days) + safety stock. If you use 8 kg a day, lead time is 2 days, and safety stock is 4 kg, you reorder when stock reaches 20 kg.
How much safety stock should I hold?
Enough to cover demand spikes and delivery delays, weighted by how critical the item is. Hold more for variable, business-critical ingredients and less for steady, non-critical ones. For perishables, prefer more frequent deliveries over large buffers to avoid spoilage.
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