Materials
Backorder
Order that cannot be fulfilled immediately due to insufficient stock.
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Updated 2025-10-01
Definition
Backorders occur when demand exceeds available inventory, and the order is fulfilled once stock is replenished.
Overview
Overview
Backorders help maintain sales even during stockouts but may affect customer satisfaction and require careful inventory management.
Example
A retailer accepts a backorder for a popular smartphone while waiting for the next shipment from the supplier.
Tags
#Backorder#Inventory#Stock Management#Materials#Order Fulfillment
Related Terms
Stockout
Reorder Point Formula (ROP formula)
Perpetual Inventory System
