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 – [PDF]
  • A continuous review inventory model with controllable backorder rate and investments – [PDF]
  • Backorder minimization in multiproduct assemble-to-order systems – [PDF]
  • Analysis of Conditional Value-at-Risk for newsvendor with holding and backorder cost under market search – [PDF]
  • A simulated annealing algorithm to the multi-period fixed charge distribution problem associated with backorder and inventory – [PDF]
  • Fuzzy Inventory Model with Backorder and Its Optimum Solution [J] – [PDF]
  • EOQ Model for Backorder in the Context of Remanufacturing [J] – [PDF]
  • Computational procedure of optimal inventory model involving controllable backorder rate and variable lead time with defective units – [PDF]
  • Inventory Decision-making in A Hybrid System Considering Disposal and Backorder – [PDF]
  • Lot-size Decision-making for Manufacturing and Remanufacturing Considering the Effect of Disposal and Backorder – [PDF]