MANAGEMENT

Detailed explanation-1: -A backorder can be defined as an order that appears out of stock when a customer visits an online store’s product page but is promised to ship once the item is available with the retailer. It is a process to allow your customer to shop products even when you have limited stock available in hand.

Detailed explanation-2: -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.

Detailed explanation-3: -Backorders are an indication that demand for a company’s product outweighs its supply. They may also be known as the company’s backlog.

Detailed explanation-4: -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.

Detailed explanation-5: -Backorder Example The examples of backorder are as follows: Mr. A purchases ten buses from the dealer, but the dealer only has four buses in inventory, which he can deliver, and for the remaining six buses, Mr. A has to wait for 7 to 8 months as it takes the dealer 7 to 8 months to get it from the supplier.