What is housing backlog?
Backlog Term mostly used in homebuilding industry
Backlog refers to unfinished work or to customer orders that have been received but are either incomplete or in the process of completion. Backlog orders are also known as Open Orders.
Backlog analysis lets you to investigate the potential revenue by reporting all the work that have been received but not yet fulfilled. If you assume that you can fulfill all the remaining work in your backlog, you can predict how much revenue you will generate over the remaining period.
It is important to watch your backlog over time. If your backlog is raising, you may face an increasing sales and demands or you may experience a production problem. If your backlog is falling, you may face a sales down trend or you may increase your production efficiency. You should perform a root cause analysis on the backlog changes and adjust your operation accordingly.
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