An aggressive advertising campaign was credited with K-Tel's inability to keep K-Fed's latest CD on the shelves. K-Tel continued to accept orders and promised to ship as soon as they could burn new discs. Customers weren't happy, but were willing to wait. This unfortunate situation can be described as a:
A) stockout.
B) backlog.
C) backorder.
D) lost sale.

Question

Quizplus · Accepted Answer

This situation is a backorder, where customers have placed orders but the company is unable to fulfill them immediately due to stockouts or other issues. The customers are willing to wait, so the company has promised to ship as soon as possible. A backlog refers to a buildup of work or orders that cannot be completed in a timely manner. A lost sale occurs when a customer decides not to purchase a product or goes to a competitor instead.

An Aggressive Advertising Campaign Was Credited with K-Tel's Inability to Keep