ECONOMICS

Detailed explanation-1: -A backorder is an order for a good or service that cannot be filled at the current time due to a lack of available supply. The item may not be held in the company’s available inventory but could still be in production, or the company may need to still manufacture more of the product.

Detailed explanation-2: -Backordering is the process of allowing your customers to place orders even if you don’t have sufficient stock on hand. Businesses implement backordering when a sudden increase in sales means that products are getting sold faster than they can be stocked.

Detailed explanation-3: -Back to back ordering is the process of raising a purchase order for goods to a supplier on the back of sales order demand with any purchase orders raised and stock ordered as a result being allocated to the sales order.

Detailed explanation-4: -out of stock. Out of stock means that a product does not currently have any inventory available and does not have a date for resupply, while ‘backordered’ implies there is a determined date for products to arrive.

Detailed explanation-5: -A backorder is an order a customer has placed for an existing item that is currently out of stock. This occurs when demand outpaces supply. Backorders can also happen due to supply chain or logistics delays.