Re: Analysis of the current 10-Q - richardo
in response to
by
posted on
Aug 28, 2007 07:59AM
From my experience, the difference between "unfilled purchase orders" and "order backlog" is
Unfilled purchase orders = customer orders
Order backlog = customer orders + marketing orders
Marketing can place orders on the factory in anticipation of customer orders. Marketing orders are often done when factory capacity is near it's limits and marketing has some customers who are very serious but haven't signed purchase orders yet. These customers are expected to want the product very quickly aftrer they sign so marketing places an order on the factory allowing them to buy materials and schedule production.