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What is periodic automatic replenishment (PAR) used for?

To establish and return to a desired level of stock

Periodic automatic replenishment (PAR) is primarily used to establish and return inventory levels to a desired point, ensuring that stock is always available to meet demand without overstocking. This method involves regularly scheduled inventory assessments, after which decisions are made to reorder stock to maintain predetermined levels. By adhering to these established quantities, organizations can streamline their inventory management processes and minimize stockouts as well as excess inventory.

In contrast, evaluating the usage of products focuses more on analyzing consumption patterns rather than directly influencing stock levels. Categorizing inventory pertains to organizing items into classifications, typically for better management and tracking, but doesn’t specifically address replenishment processes. Handling emergency stock requests deals with immediate and often unforeseen needs for inventory, which is a reactive approach rather than a systematic method like periodic automatic replenishment. Thus, the primary function of PAR is closely aligned with maintaining optimal stock levels as outlined in the correct choice.

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To evaluate the usage of products

To categorize inventory

To handle emergency stock requests

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