Backorder Rate

A backorder is accepted demand left for later fulfillment because it cannot be supplied under the current availability rule. A backorder rate is the backordered quantity divided by the quantity requested in the same period, counted in the same unit in numerator and denominator: units, order lines, or orders. State whether it measures entries into backorder, outstanding backlog at a date, or the final outcome.

Of 100 requested units, suppose 92 ship immediately and eight enter backorder. The initial unit backorder rate is 8%. If five later ship and three are canceled, the initial rate remains 8%; the final cancellation share is 3%. Reporting the 3% final cancellation share as the initial backorder rate would mix the stages.

Use linked status history to avoid counting the same unit repeatedly as a new backorder. Partial fulfillment and later cancellation need explicit rules. A low outstanding backlog can result from quick fulfillment or mass cancellation, so backlog alone does not demonstrate good service.

Examples and calculations here are illustrative.

References:

• Oracle Retail Order Administration Cloud Service Reports Guide