Inventory and Par Levels: Stock Enough Without Drowning in Product
Direct answer: Set par levels based on sales velocity, lead time, and how often you can restock. Keep more of what sells, and be ruthless about slow movers.
Define your “par”
Par level is how much of an item you want on hand (in storage + machines) to support your service cadence without running out.
Simple par formula (good enough)
- Weekly sales × lead time buffer + safety stock
If you buy weekly and restock weekly, start with 1.5–2.0× weekly sales for top items, then adjust.
Avoid dead inventory
- Limit the number of “experimental” SKUs at once.
- Rotate slow movers out quickly.
- Don’t buy cases of niche items until they prove demand.
Storage strategy
- Use bins by category and label them.
- Track expiry dates for anything with risk.
- Keep a “route ready” staging area to speed loading.
Telemetry + AI makes this easier
- Telemetry shows sales velocity and stockouts.
- AI can help you translate that into reorder points.
Guide: AI for Forecasting & Product Mix
Operator takeaway: Inventory is cash. Keep cash in the products that move.
Related operator guides
- Where to Buy Product
- Route Planning
- AI for Forecasting & Product Mix
- Pricing & Margins
- Cashless & Telemetry
Want to join the operator network? Contact us.