Backorder occurs when the vendor cannot fill the purchaser's order.

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Multiple Choice

Backorder occurs when the vendor cannot fill the purchaser's order.

Explanation:
Backorder is about an item not being in stock at the moment the order is placed. When a purchaser orders something that isn’t available, the vendor can’t fill the order right away, so the order is kept on hold and scheduled for shipment as soon as inventory is replenished. That’s why describing a backorder as the vendor not being able to fill the purchaser’s order captures the essence of what’s happening. The other options describe outcomes or alternatives (shipping only after stock is available, approving the order anyway, or offering a substitute) but they don’t define the situation that creates a backorder, which is the temporary unavailability of the item.

Backorder is about an item not being in stock at the moment the order is placed. When a purchaser orders something that isn’t available, the vendor can’t fill the order right away, so the order is kept on hold and scheduled for shipment as soon as inventory is replenished. That’s why describing a backorder as the vendor not being able to fill the purchaser’s order captures the essence of what’s happening. The other options describe outcomes or alternatives (shipping only after stock is available, approving the order anyway, or offering a substitute) but they don’t define the situation that creates a backorder, which is the temporary unavailability of the item.

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