The parstock approach requires which of the following?

The parstock approach requires which of the following?

• A. Vendors to set reorder quantities
• B. Customers to forecast demand
• C. The purchaser to determine the level of inventory that must be in stock from one delivery day to the next
• D. Warehouse staff to label stock

Answer: (C)

Parstock sets a target on-hand quantity for each item, called the par level, to keep supply steady between deliveries. The purchaser uses this target to determine how much inventory must be in stock from one delivery day to the next, ensuring there’s enough on hand to meet needs until the next shipment arrives. This keeps operations prepared without waiting for vendors to dictate quantities or relying on external demand forecasting at the moment of ordering, and it isn’t about labeling stock in the warehouse. By maintaining stock up to the par level, you also reduce the risk of stockouts and unnecessary excess.

Parstock sets a target on-hand quantity for each item, called the par level, to keep supply steady between deliveries. The purchaser uses this target to determine how much inventory must be in stock from one delivery day to the next, ensuring there’s enough on hand to meet needs until the next shipment arrives. This keeps operations prepared without waiting for vendors to dictate quantities or relying on external demand forecasting at the moment of ordering, and it isn’t about labeling stock in the warehouse. By maintaining stock up to the par level, you also reduce the risk of stockouts and unnecessary excess.