Red Seal Parts Technician Practice Exam

What is a backorder in parts ordering?

1. A backorder occurs when an ordered part is not currently in stock and needs to be fulfilled later.

2. A backorder means that part has been delivered but not yet invoiced.

3. A backorder refers to a part that is out of date and no longer in production.

4. A backorder indicates that the part is available for immediate pickup.

The correct answer is: A backorder occurs when an ordered part is not currently in stock and needs to be fulfilled later.

A backorder is a specific term used in parts ordering that refers to a situation where a customer places an order for a part that is currently out of stock. The important aspect of a backorder is that the supplier or retailer expects to fulfill that order at a later date when the part becomes available again. This means that while the part cannot be delivered immediately, the order has been acknowledged, and the supplier is committed to fulfilling it once the inventory is replenished. In contrast, the other options describe different situations that do not accurately capture what a backorder signifies. For instance, when a part has been delivered but is not yet invoiced, this refers to the status of the billing process rather than the availability of the part. Similarly, a part that is out of date and no longer in production would not be eligible for backordering, as there is no expectation for it to be restocked. Lastly, indicating that a part is available for immediate pickup directly contradicts the concept of a backorder, as it implies that the item is in stock and ready for fulfillment.