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Question

Backorder - What is an example of a back order?

Answer

The following is a hypothetical situation in which Mr. A purchases 10 buses from a dealer. Having said that, there are only four buses available at the dealership. The dealership needs 7 to 8 months to obtain the remaining six buses from the supplier, thus there will be a wait time of that amount. Here we may see an example of a backorder.