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Supply Chain Glossary

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Back Order


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

In supply chain terms when a customer order cannot be immediately fulfilled from stock, the customer requirement may be placed on ‘back order’.  This implies that a replenishment order will be raised on the next tier of the supply chain and, when sufficient materials are available, the outstanding ordered amount will be forwarded to the original customer.

 




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