Multiple choice technology testing

Which is the following actions need to be taken when an order is back ordered ?

  1. Cancel the order

  2. increase on hand quantity

  3. book the order

  4. decrease on hand quantity

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When an order is back ordered, you need to increase the 'on hand' quantity to make stock available for fulfillment. A backorder occurs when inventory is insufficient, so adding stock resolves the backorder status. Cancelling or decreasing quantity would worsen the situation.