A restaurant has set a par level for chocolate chips at 10 lbs. They currently have 5 lbs on hand, use approximately 10 lbs per week, and maintain a safety stock of 2 lbs. If the delivery lead time is 2 days, how many pounds of chocolate chips should they order to meet their par level?

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TheoryPractice · Accepted Answer

5 lbs. Answer: 5 lbs Using the par stock method, the restaurant brings their inventory up to the par level each time an order is placed, regardless of current inventory levels. In this case, 10 (par level) - 5 (amount on hand) = 5 (order). The other options are calculated using incorrect inventory methods that would consider additional variables, not strictly par stock method.

A restaurant has set a par level for chocolate chips at 10 lbs. They currently have 5 lbs on hand, use approximately 10 lbs per week, and maintain a safety stock of 2 lbs. If the delivery lead time is 2 days, how many pounds of chocolate chips should they order to meet their par level?

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