Define the term "backorder" in DC operations.

The term "backorder" refers to an order that cannot be filled at the current time due to insufficient stock. This situation arises when customer demand for a product exceeds the available inventory, leading to the need to fulfill the order later when stock levels are replenished. In logistics and distribution center operations, managing backorders is crucial since it impacts customer satisfaction and fulfillment efficiency. In this context, backorders indicate that the item is recognized as being in demand, and actions will typically be taken to either expedite the restock or communicate timelines to the customer regarding when they can expect their order to be fulfilled.

The other options do not accurately define what a backorder is. An order that is fully stocked pertains to regular order fulfillment without stock issues. Orders on hold for quality checks or those canceled by the customer are separate processes and do not involve the concept of backordering, which specifically relates to items that are temporarily out of stock while still being recognized as needing fulfillment.