backlog

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Backlog

The total value of orders for a product that have not been filled. The backlog can help a company estimate its future earnings or other performance more accurately. This metric is used most often in manufacturing.

backlog

a build-up of customer orders which a firm has agreed to deliver at specified future dates. Backlogging is one means by which a firm can ‘even out’ demand in relation to its production capacity, allowing delivery lead times to increase during peaks in demand and shorten during slack periods. Backlogs of orders can provide an alternative to STOCKHOLDING or OVERTIME working, and varying the backlog may be the only way of dealing with demand fluctuations in some service industries. See PRODUCTION SCHEDULING.