Final answer:
Another name for par level inventory is Safety stock inventory, which is the minimum amount of inventory needed to meet regular demand and act as a buffer against variability.
Step-by-step explanation:
Another name for par level inventory is B) Safety stock inventory.
Par level inventory is the amount of inventory that a business sets as a minimum to have on hand to meet regular demand. When inventory levels fall to this predetermined point, it triggers a replenishment order. This is also known as safety stock inventory, which acts as a buffer against variability in demand or supply chain disruptions to prevent stockouts.
The Reorder Point inventory is closely related because it represents the level at which new inventory must be ordered, taking into account lead times. However, it is not synonymous with safety stock inventory. Economic Order Quantity (EOQ) refers to the optimal number of units a company should purchase to minimize the costs of both holding inventory and ordering. Just-in-time (JIT) inventory is an inventory management strategy where materials are only ordered and received as needed in the production process, reducing inventory costs. Lastly, Perpetual inventory refers to a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.