What is the rear order?

Rear order is an order that cannot be filled in when it is sent because the supply to fill in the order is not available. Companies usually try to avoid orders because customers generally want their orders to fill in immediately, even if they can be willing to wait in certain circumstances. However, companies can not always anticipate how orders are moving, which can make it difficult to determine what to store. So the company is constantly walking on a rope in terms of inventory management. The customer has the possibility to cancel the order without a fine or wait for the delivery of items and is usually provided an estimated transport period that can help the customer make this decision. If the customer is willing to wait, his order will be filled in when there is a stock.

Sometimes items are ordered back for a period longer than expected. In these situations, the company may give up transport costs or offer customers other compensation as a reward for their bladesLost during the back period. This is also designed to maintain customers loyalty for customers to be in favor of this company despite the problem with the order because they remember that it is good.

for companies can be costly. In addition to being associated with costs such as administrative expenses, orders can also lead to a bad reputation that can cause the company to lose future customers' orders. Although the commands are back outside control of the company, as if the manufacturer limits stocks of popular items and the company to order as much as possible, but they cannot maintain step with demand, customers can consider the company unfavorable. Especially if the cordlessness repeatedly encounters his back for an item that the customer can do elsewhere.

Inventory management requires sufficient quantity of goods in stock so that the company can serve sweatI have my customers without overestimating. Surprise requires storage space for excess that costs money. It can also force companies to return items at the end of the reason, which is costly, and if the goods are irreversible, the company can be forced to sell them with a discount to get them from the warehouse, potentially loss. For this reason, companies are trying to balance their shares to avoid the situation in the back while maintaining a number of items in stock reasonable.