Customer Service Creating inventory can speed delivery and improve the firm’s on-time delivery of goods. High inventory levels reduce the potential for stockouts and backorders, which are key concerns of wholesalers and retailers. A stockout is an order that cannot be satisfied, resulting in loss of the sale. A backorder is a customer order that cannot be filled when promised or demanded but is filled later. Customers do not like waiting for backorders to be filled. Many of them will take their business elsewhere. Sometimes, customers are given discounts for the inconvenience of waiting.