For every item you have in inventory, you have the option of setting a low and high par level. We use this information much like you would in an existing business process where you think about par levels. The par level determines the level of inventory necessary to be on hand at a given time. For each item, par levels are used to trigger notices for automatic reordering, quantity to reorder and make other business-related recommendations
In this illustration the High Par Level has been set to 4 and the Low Par Level has been set to 1. Your numbers could be dramatically different based on the item, your volume and many other factors. You’ll see that we currently have 3 of these items On Hand. Once our On Hand level has reached our Low Par Level, this item will appear in our alerts to reorder because of a Low Par Level trigger firing.
The High Par Level will be used to calculate how many items to reorder. The automatic reorder will recommend ordering the quantity needed to bring inventory levels back up to our High Par Level.
Summary:
Low Par Level = minimum number of items to have on hand before a reorder is needed
High Par Level = our maximum number of items we want to have on hand
The recommended reorder quantity will be the difference between On Hand quantity and High Par Level quantity.