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Backordernoun

An order accepted for an item that is currently out of stock.

A backorder is a customer order for an item you do not currently have, promised for fulfilment once stock arrives. It captures demand during a stockout rather than losing the sale.

High backorder levels are a signal that reorder points or supplier reliability need attention.

Related terms

Stockout

Running out of an item so demand cannot be fulfilled.

Safety Stock

A buffer of extra inventory held to protect against demand or supply variability.

Lead Time

The total time between placing an order and receiving the goods.

More in Inventory

ABC Analysis Asset Tracking Available to Promise (ATP) Barcode Carrying Cost Consignment Inventory Cycle Count Cycle Stock

Backorder is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.

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