Abstract
This paper examines the performance of back orders in a manufacturing operation which utilizes the management and scheduling techniques of material requirements planning (MRP) and just in time (JIT). The topic is concerned with the impact of supply chain management and marketing actions such as back orders on customer service, sales, and the production system. The interjection of back orders within the time fence of the master production schedule will reduce sales, revenue and customer Service up through the supply chain, while the total system cost associated with these back orders and service levels would increase.
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