MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What do they call an order that is not yet finished or still in process?
A
Finished good
B
Back order
C
Pre-order
D
Post-order
Explanation: 

Detailed explanation-1: -What Is a Backorder? 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: -1. Manual The various orders are listed amnually as per confirmation and promised quantities(ATP) are reassigned. 2. Automatic/via resheduling System does automatically taking the delivery priority field into consideration.

Detailed explanation-4: -What does backorder mean? Backorder or back order refers to items that are out-of-stock but will be back in stock be soon. A product on backorder is already planned by the manufacturer but has not been produced yet, and will be next on the list for delivery when it is back in stock.

Detailed explanation-5: -An open order row (no backorder) will have the ‘quantity’ field equal the ‘open quantity’ field. If the row is backordered, then these 2 fields will NOT be equal. You could also look at the ‘delivered quantity’. If there is a qty in the ‘delivered quantity’ and the row is open then it is a backorder.

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