Par Level
The minimum quantity of each item that a DME supplier must have on hand (patient-ready) to meet expected demand without stockouts.
Par level (from the Latin 'par,' meaning equal) is the minimum quantity of each equipment type that a supplier aims to maintain as available, patient-ready inventory at all times. If the on-hand count drops below par, it triggers a purchasing or reprocessing action to restore the buffer before a stockout occurs.
Setting par levels correctly requires understanding demand patterns (how many units of each type are typically checked out per week), lead times (how long reprocessing takes, how quickly new units can be procured), and safety margins (how much buffer is appropriate given demand variability). Par levels for high-demand, long-lead items should be higher than for slow-moving equipment.
Par levels are meaningless without accurate real-time inventory data. If the tracking system shows 8 concentrators available but 3 of them are actually dirty in the receiving bay, the effective available count is 5 — and a supplier relying on the system count may accept an order they can't fulfill. Accurate check-in and reprocessing tracking is what makes par level management reliable.
Reviewing par levels monthly — adjusting for seasonal demand shifts, new referral sources, or changes in the product mix — keeps the purchasing plan aligned with actual business needs.