The parstock approach is primarily aimed at maintaining inventory levels across which time frame?

• A. Storage space utilization
• B. Vendor lead times
• C. Customer demand forecasts
• D. The level of inventory that must be in stock from one delivery day to the next

Answer: (B)

Parstock is about keeping enough stock on hand to cover what you’ll sell while you wait for your next supplier delivery. The key timeframe is the vendor lead time—the period from when you place an order to when it arrives. You set the par stock level to cover expected usage during that lead time, plus a safety buffer for variability, so you don’t run out before new stock arrives. When on hand equals the par level, you reorder to restore stock back up to that target. This focus on lead time distinguishes parstock from considerations like warehouse space or broad forecasted demand. It’s specifically about maintaining inventory through the delay between ordering and receiving from vendors.