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Backorder

What is 'Backorder'

An order for a good or service that cannot be filled at the current time due to a lack of available supply. The higher the number of items backordered, the higher the demand for the item.

Explaining 'Backorder'

Backorders are an important factor in inventory management analysis. If a company consistently sees items in backorder then this could be taken as a signal that it is running too lean - and that it is losing out on business by not providing the products demanded by its customers.


Further Reading


Optimal economic production quantity policy for randomly failing process with minimal repair, backorder and preventive maintenance
www.tandfonline.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

A continuous review inventory model with controllable backorder rate and investmentsA continuous review inventory model with controllable backorder rate and investments
www.tandfonline.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Backorder minimization in multiproduct assemble-to-order systemsBackorder minimization in multiproduct assemble-to-order systems
www.tandfonline.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Analysis of Conditional Value-at-Risk for newsvendor with holding and backorder cost under market searchAnalysis of Conditional Value-at-Risk for newsvendor with holding and backorder cost under market search
link.springer.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

A simulated annealing algorithm to the multi-period fixed charge distribution problem associated with backorder and inventoryA simulated annealing algorithm to the multi-period fixed charge distribution problem associated with backorder and inventory
www.tandfonline.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Fuzzy Inventory Model with Backorder and Its Optimum Solution <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLXB200604014.htm' />Fuzzy Inventory Model with Backorder and Its Optimum Solution [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLXB200604014.htm'>PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

EOQ Model for Backorder in the Context of Remanufacturing <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-HHGB200801021.htm' />EOQ Model for Backorder in the Context of Remanufacturing [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-HHGB200801021.htm'>PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Computational procedure of optimal inventory model involving controllable backorder rate and variable lead time with defective unitsComputational procedure of optimal inventory model involving controllable backorder rate and variable lead time with defective units
www.tandfonline.com [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Inventory Decision-making in A Hybrid System Considering Disposal and BackorderInventory Decision-making in A Hybrid System Considering Disposal and Backorder
en.cnki.com.cn [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …

Lot-size Decision-making for Manufacturing and Remanufacturing Considering the Effect of Disposal and BackorderLot-size Decision-making for Manufacturing and Remanufacturing Considering the Effect of Disposal and Backorder
en.cnki.com.cn [PDF]
… In industry, a failure can adversely affect the economics of plant operation … This study mainly aims to develop an integrated EPQ model that links PM, minimal repair and backorder for a deterioration process, in which the production run time is optimised …



Q&A About Backorder


Why are backorders important in inventory management analysis?

Backorders are important in inventory management analysis because they indicate demand for an item.

What does "too lean" mean in this context?

Running too lean means that there isn't enough product to fill all orders.

How can you tell if a company is running too lean by looking at their items on backorder?

If a company consistently sees items on backorder, then it could be taken as a signal that it is running too lean and losing out on business by not providing the products demanded by its customers.

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.