What does "backorder" mean in the context of inventory and DASF?

In the context of inventory and the DASF, a "backorder" refers to an item that has been ordered but is currently out of stock. This terminology is used frequently in supply chain management to indicate that a customer or unit has placed an order for a product, but the supplier does not have enough of that product on hand to fulfill the order immediately. The order is kept on hold until the item becomes available again.

This situation is particularly relevant in the DASF as it tracks the status of requisitions, helping manage supply availability and ensuring that customers are informed about when they can expect to receive their ordered items. Understanding the concept of backorders is crucial for effective inventory management, as it assists in anticipating shortages and planning for future stock needs.