What is Backorder Rate ?
Backorder Rate refers to when a customer places an order for a product that is temporarily out of stock, the order is backordered, meaning the fulfillment of that order is delayed until the product becomes available again. Backordered Units refer to the number of units that customers have ordered but are not currently available in inventory for immediate shipment or delivery. These units are typically allocated to customer orders but cannot be fulfilled due to stockouts or insufficient inventory levels. Total units ordered represent the total quantity of units that customers have ordered during a specific period, regardless of whether they have been fulfilled or back-ordered. It includes both in-stock and out-of-stock items. High backorder rates can negatively impact the customer experience, leading to dissatisfaction, order cancellations, and potential loss of business. Customers expect timely fulfillment of their orders, and backorders can result in delays and inconvenience.
How to Calculate Backorder Rate?
Backorder Rate calculator uses Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders) to calculate the Backorder Rate, Backorder Rate is a metric that measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory or stockouts. Backorder Rate is denoted by BR symbol.
How to calculate Backorder Rate using this online calculator? To use this online calculator for Backorder Rate, enter Number of Undeliverable Orders (NUO) & Total Number of Orders (TNO) and hit the calculate button. Here is how the Backorder Rate calculation can be explained with given input values -> 0.152542 = (45/295).