Which term describes an unfulfilled customer order due to insufficient inventory, i.e., an immediate or past-due demand against an item with stockouts?

• A. Backlog
• B. Backorder
• C. Available inventory
• D. ASN

Answer: (B)

Backorder is the situation where a customer order can’t be filled right away because there isn’t enough inventory on hand. The demand exists now or has become due, but stock is out, so the order is put on hold and will be fulfilled once replenishment arrives. This fits the scenario of an immediate or past-due demand against an item with stockouts precisely, since the delay is caused by the lack of stock rather than by processing or capacity delays alone.

In contrast, backlog refers to unfilled orders in the system that can arise from various causes, including capacity or lead-time issues, not solely stockouts. Available inventory would imply there is enough stock to satisfy orders now, and an ASN is a notice about an inbound or outbound shipment, not about fulfilling customer orders.