Work out backorder rate instantly with clear inputs, formula shown and shareable results.
Backorder rate is the share of demand you could not satisfy from stock. Tracking it alongside the value delayed and the total line-days outstanding separates a large number of trivial shortages from a small number of high-value ones that are ageing.
Backorder rate
Backorder % = Backordered lines / Total lines x 100
Line-days outstanding
Line-days = Backordered lines x Average days on backorder
A stockout is a zero-inventory event. A backorder is confirmed demand you have accepted but not shipped, so it also carries a promise-keeping obligation.
Under 2% for fast-moving consumer lines; engineered or made-to-order items routinely run higher by design.