Each location satisfies incoming orders from its on-hand inventory. If a location cannot satisfy an incoming order/demand, then unsatisfied demand is backlogged (i.e., backordered). For example, if a wholesaler has only 12 units of on-hand inventory and the incoming order from the retailer is 20 units, then the wholesaler ships only units to the retailer. The remaining units is backlogged (i.e., backordered); that is, the wholesaler ships those remaining units in future when it receives additional cases of beer from the distributor and replenishes its inventory