Final answer:
The correct answer is option c) Reorder point.
Step-by-step explanation:
The term par level inventory refers to the ideal quantity of inventory that a business should have on hand to meet customer demand without incurring overstock or stockout costs. It is a concept commonly used in inventory management within the field of business and supply chain management. While the concept of par level inventory is related to inventory management terms such as maximum stock, minimum stock, reorder point, and safety stock, its closest synonym among the options provided is reorder point.
The reorder point formula helps businesses determine the right time to order more stock, which is crucial to maintaining the right inventory levels. It takes into account the lead time for order fulfillment and the average daily usage rate of the inventory item. Therefore, while par level can influence or be influenced by safety stock levels, it is distinct from the concepts of maximum stock and minimum stock as it specifically indicates when the inventory level has reached a point where it is time to reorder.