## Backorder Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
BR = (NUO/TNO)
This formula uses 3 Variables
Variables Used
Backorder Rate - Backorder Rate is a tool to track the number of delayed orders due to stockouts.
Number of Undeliverable Orders - Number of Undeliverable Orders refers to the quantity of orders that cannot be successfully delivered to the intended recipients due to various reasons.
Total Number of Orders - Total Number of Orders refers to the overall quantity of orders received by a business within a specific period.
STEP 1: Convert Input(s) to Base Unit
Number of Undeliverable Orders: 45 --> No Conversion Required
Total Number of Orders: 295 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
BR = (NUO/TNO) --> (45/295)
Evaluating ... ...
BR = 0.152542372881356
STEP 3: Convert Result to Output's Unit
0.152542372881356 --> No Conversion Required
0.152542372881356 0.152542 <-- Backorder Rate
(Calculation completed in 00.004 seconds)
You are here -
Home »

## Credits

Created by Aashna
IGNOU (IGNOU), India
Aashna has created this Calculator and 100+ more calculators!
Verified by Surjojoti Som
Rashtreeya Vidyalaya College of Engineering (RVCE), Bangalore
Surjojoti Som has verified this Calculator and 10+ more calculators!

## < 25 Cost Accounting Calculators

Material Cost Variance
Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)
Labour Cost Variance
Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)
Revised Standard Quantity
Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity
Learning Curve
Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)
Labour Efficiency Variance
Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance
Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage
Labour Rate Variance
Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance
Cycle Time
Cycle Time = Process Time+Inspection Time+Move Time+Queue Time
Revised Standard Hours of Labours
Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)
Material Yield Variance
Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit
Overall Equipment Effectiveness
Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time
Avoided Cost
Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost
Material Usage Variance
Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)
Labour Mix Variance
Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)
Material Price Variance
Material Price Variance = Actual Quantity*(Standard Price-Actual Price)
Material Quantity
Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)
Customer Acquisition Cost
Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients
First Pass Yield
First Pass Yield = Number of Good Products Finished/Number of Production Orders Started
Average Days Delinquent
Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding
Backorder Rate
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
Monthly Recurring Revenue
Monthly Recurring Revenue = Number of Customers*Average Billed Amount
Sell -Through Rate
Sell Through Rate = Number of Units Sold/Number of Units Received
Takt Time
Takt Time = Production Available Time/Customer Demand
On-Time Delivery
On-Time Delivery = On Time Units/Total Units

## Backorder Rate Formula

Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
BR = (NUO/TNO)

## What is Backorder Rate ?

Backorder Rate refers to when a customer places an order for a product that is temporarily out of stock, the order is backordered, meaning the fulfillment of that order is delayed until the product becomes available again. Backordered Units refer to the number of units that customers have ordered but are not currently available in inventory for immediate shipment or delivery. These units are typically allocated to customer orders but cannot be fulfilled due to stockouts or insufficient inventory levels. Total units ordered represent the total quantity of units that customers have ordered during a specific period, regardless of whether they have been fulfilled or back-ordered. It includes both in-stock and out-of-stock items. High backorder rates can negatively impact the customer experience, leading to dissatisfaction, order cancellations, and potential loss of business. Customers expect timely fulfillment of their orders, and backorders can result in delays and inconvenience.

## How to Calculate Backorder Rate?

Backorder Rate calculator uses Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders) to calculate the Backorder Rate, Backorder Rate is a metric that measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory or stockouts. Backorder Rate is denoted by BR symbol.

How to calculate Backorder Rate using this online calculator? To use this online calculator for Backorder Rate, enter Number of Undeliverable Orders (NUO) & Total Number of Orders (TNO) and hit the calculate button. Here is how the Backorder Rate calculation can be explained with given input values -> 0.152542 = (45/295).

### FAQ

What is Backorder Rate?
Backorder Rate is a metric that measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory or stockouts and is represented as BR = (NUO/TNO) or Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders). Number of Undeliverable Orders refers to the quantity of orders that cannot be successfully delivered to the intended recipients due to various reasons & Total Number of Orders refers to the overall quantity of orders received by a business within a specific period.
How to calculate Backorder Rate?
Backorder Rate is a metric that measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory or stockouts is calculated using Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders). To calculate Backorder Rate, you need Number of Undeliverable Orders (NUO) & Total Number of Orders (TNO). With our tool, you need to enter the respective value for Number of Undeliverable Orders & Total Number of Orders and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know