Backorders ____.
A)Result from lost sales
B)Have little financial impact
C)May occur as a result of a stockout
D)Force a customer to purchase elsewhere

Question

Quizplus · Accepted Answer

Backorders occur when there is a stockout, meaning the inventory for the product is temporarily unavailable. This can happen due to a variety of reasons such as unexpected demand, delays in production or shipping, etc. Backorders can result in delayed delivery or fulfillment for the customer, but they also provide an opportunity for the seller to fulfill the order at a later date and retain the customer's business. Backorders may have a financial impact depending on the length of time it takes to fulfill them and the associated costs. They do not necessarily result in lost sales or force customers to purchase elsewhere; however, it is important for businesses to manage backorders effectively to minimize any negative impact on customer satisfaction and retention.