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Old 27th May 2011, 10:45 AM
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Default What is an "Order Book"?



"The order book is over flowing."
Clutch Auto says order book overflowing, triples expansion - CNBC-TV18 -

"Looking at their order book the company traditionally has been sitting on an order book of three years plus. This is because of the kind of demand they have for the textile machinery."
Tulsian's views: Lakshmi Machine, Dolphin Offshore, M&M Fin - CNBC-TV18 -

With reference to the above, what does an order book mean?

I have found no clear definition on the internet.

However, my intuition suggests it has something to do with pending orders from customers. (for example - "I want 30 chocolates" is an "order" from the customer however I am only producing 10 chocolates in my factory, so in such a case - my order book is overflowing?)

Please help in understanding the concept?

Thanks.
- arcus.
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Old 27th May 2011, 11:26 AM
Sachin Asher
 
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Default

Yes, "Order book" means pending orders with the company.

There is no definition of "overflowing order book", but it usually means the company has enough orders to keep the company busy (run at almost 100% capacity utilization) in the next 4-6 quarters.
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