Guides / Bars
How to set bar par levels and stop over-ordering
Par is the stock you need to reach the next delivery with a little in hand. Anything above it is cash on a shelf.
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Build your order sheetA par level is the amount of each product you should have on hand right after a delivery. It is built from how fast you use it, how long the truck takes, and how much cover you want for a busy weekend. Order up to par, never past it.
The formula
Par = weekly usage ÷ 7 × (days between deliveries + lead time) × (1 + safety), rounded up. Order = par − on hand. Days of cover = on hand ÷ daily usage; if it is under the lead time, you run out before the truck comes.
What a good number looks like
Enough for a long weekend or a late truck.
Money you paid the supplier early. Skip that line next order.
You will run out. Order today and add it to the safety list.
What to do about it
- Get weekly usage from the till, not from memory.
- Count on the same day each week, before the order goes in.
- Holding stock costs 15 to 25% a year in cash, breakage and shrink. Par keeps that small.
Now do it with your numbers.
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