Food waste is a silent killer of profit margins in the HORECA industry, and nowhere is this more critical than in frozen food inventory. While frozen goods have a longer shelf life than fresh produce, overstocking leads to freezer burn, quality degradation, high energy costs, and eventually, waste.
The secret to eliminating waste and optimizing cash flow lies in mastering your Par Level. The Par Level (Periodic Automatic Replacement) is the minimum quantity of stock you must have on hand to cover demand between deliveries. For frozen inventory, a precise Par Level is the difference between a profitable operation and one losing money to freezer-bound losses.
Here is the straightforward method for calculating the ideal Par Level for your frozen stock, customized to maximize efficiency and minimize waste.
Step 1: Determine Your Average Daily UsageÂ
Start with data, not guesswork. Use your sales reports to calculate how much of a specific frozen item (e.g., cases of frozen chicken wings, bags of frozen vegetables) you use daily or weekly.
Step 2: Account for Lead Time & Delivery Frequency
The Par Level must cover the consumption period between placing an order and receiving it. This period is the Lead Time.
 * For products delivered weekly, your Par Level will be based on 7 days of stock plus a buffer.
 * For products delivered twice a week, your stock only needs to cover 3.5 days, dramatically reducing the risk of over-ordering.
Step 3: Calculate Your Safety StockÂ
Even with the best data, demand can spike. Safety Stock is your emergency buffer, but for frozen items, this buffer should be lower than for fresh goods, as the risk is less about immediate spoilage and more about storage costs.
 * Safety Stock Recommendation: For reliable frozen wholesale products, aim for 10\% to 15\% of your usage over the lead time.
 * Frozen Stock Note: If you rely on a slow supplier, your Safety Stock must be higher.
The Par Level Formula for Frozen Inventory
Combining the factors above gives you the ideal stock level to maintain immediately after a delivery:
Example: Frozen French Fries
 * ADU: You use 20 bags of fries per day.
 * Lead Time: Your supplier delivers every 3.5 days (twice a week).
 * Safety Stock: 10% of usage over 3.5 days.
  * Usage: 20 times 3.5 = 70 bags.
  * Safety Stock: 70 \times 0.10 = 7 bags.
Your Order Quantity: If your Par Level is 77 bags and you currently have 20 bags, your order is 77 - 20 = 57 bags.
Orderiin: The Secret Weapon Against Frozen Waste
The single biggest factor that allows you to confidently set a low, efficient Par Level is a minimal Lead Time. A high Par Level is a necessity only when your supplier is slow and unreliable.
Orderiin removes this risk. We provide a comprehensive wholesale catalogue—from your bulk frozen food and cleaning supplies to custom food packaging—all supported by an unbeatable delivery speed.
We enable lower Par Levels and lower waste because we eliminate the wait.
> Orderiin is your guarantee that you can order less, more often, and never run out. We deliver all your essential wholesale stock in just 2 hours, faster than anyone else, fundamentally minimizing the 'Lead Time' risk in your Par Level calculation.
Ready to slash your freezer waste and optimize your inventory? Stop over-ordering and start relying on speed.
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