How does keeping Cancel Backorders as Default to Next Level in Hierarchy impact the configuration?

Summary:

While setting up a subinventory, we have an option for keeping Cancel Backorders as Default to Next Level in Hierarchy, I want to understand, how this is going to help us in the Transaction.

Content (required):

While setting up a subinventory, we have an option for keeping Cancel Backorders as Default to Next Level in Hierarchy, I want to understand, how this is going to help us in the Transaction

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