MANAGEMENT

Detailed explanation-1: -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-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: -Usually, a backorder arises when a potential customer tries to place an order for a product but the order cannot be fulfilled immediately because the merchant doesn’t have the product available for sale at that particular point in time.

Detailed explanation-4: -A backorder is an order for an item that is not currently in stock. If a product is out of stock but still available for customer purchase, it is on backorder. Customers purchasing backordered products will have to wait longer to receive the product.