What is a Backorder?

Backorders are products that are temporarily out of stock, but a customer is permitted to place an order against future inventory. A backorder generally indicates that customer demand for a product or service exceeds a company’s capacity to supply it. Back orders are both good and bad. Strong demand can drive back orders, but so can suboptimal planning.

Problem

To identify products at risk of backorder before the event occurs so that business has time to react.