This approach, combined with a near-real-time data engine, provides the ability to identify and address issues at the tactical level that, for example, would show overstock or understock levels by location, or production lead times beyond acceptable targets.
When the length of the season is much shorter than the replenishment time or when replenishment costs are high, a widely-studied approach has been to make a single shipment at the beginning of the sales season for a quantity that optimally balances the costs of understock and overstock.
The Manugistics system offered several other features: automated input of demand signals into Motorola's overall planning system: automated feedback to the customer of Motorola's supply commitment; automatic analysis of inventory over- or understock with signals to responsible planners: and "management by exception" instead of a line-by-line examination of inventory.
She gently comments that such versions represent only "an understock" of a vibrant Italian theatrical production, indeed a sober reflection about the paucity of Italian plays available to the American public in comparison with Italian narrative and poetry.
When the wholesale relationship comprises only a per-unit price that exceeds the manufacturing cost, the retailer's inventory strategy will not properly reflect the channel's overstock and understock costs.