What happens when a backorder occurs?

• A. The vendor cannot fill the purchaser's order
• B. The order ships on time
• C. The order is canceled automatically
• D. The purchaser restocks themselves

Answer: (A)

Backorder means the item is temporarily unavailable in the vendor’s current stock, so the vendor cannot fill the purchaser’s order right away. The order is put on hold and will be shipped as soon as the item becomes available, often with an estimated date for fulfillment. This is why the statement that best fits a backorder is that the vendor cannot fill the purchaser’s order at the time.

If the order ships on time, that would indicate the item was in stock and not backordered. A backorder isn’t automatically canceled, though a cancellation could occur if the purchaser chooses. The idea that the purchaser must restock themselves doesn’t align with how backorders are handled, since the supplier is responsible for fulfilling the delayed quantity when stock returns.