In addition, its capacity to use information on the state of demand allows it to set inventory levels on a SKU basis that balances the benefits of having a product available against the costs of holding work-in-process and finished goods inventories.
( ( In addition ) ( , ( ( its ( capacity ( to ( ( use information ) ( on ( ( the state ) ( of demand ) ) ) ) ) ) ) ( ( ( ( allows ( it ( to ( ( set ( inventory levels ) ) ( on ( ( a ( SKU basis ) ) ( that ( balances ( ( the benefits ) ( of ( having ( ( a product ) ( available ( against ( ( the costs ) ( of ( holding work-in-process ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) and ) ( finished ( goods inventories ) ) ) . ) ) ) )
(ROOT (S (PP (IN In) (NP (NN addition))) (, ,) (NP (PRP$ its) (NN capacity) (S (VP (TO to) (VP (VB use) (NP (NN information)) (PP (IN on) (NP (NP (DT the) (NN state)) (PP (IN of) (NP (NN demand))))))))) (VP (VP (VBZ allows) (S (NP (PRP it)) (VP (TO to) (VP (VB set) (NP (NN inventory) (NNS levels)) (PP (IN on) (NP (NP (DT a) (NNP SKU) (NN basis)) (SBAR (WHNP (WDT that)) (S (VP (VBZ balances) (NP (NP (DT the) (NNS benefits)) (PP (IN of) (S (VP (VBG having) (S (NP (DT a) (NN product)) (ADJP (JJ available) (PP (IN against) (NP (NP (DT the) (NNS costs)) (PP (IN of) (NP (VBG holding) (NNS work-in-process)))))))))))))))))))) (CC and) (VP (VBD finished) (NP (NNS goods) (NNS inventories)))) (. .)))
Balancing  the benefits of product availability and the cost of holding in progress as well as finished goods can be computed through a mathematical model.
( ( Balancing ( ( ( ( the benefits ) ( of ( product availability ) ) ) and ) ( ( the cost ) ( of ( ( ( holding ( in progress ) ) ( as ( well as ) ) ) ( finished goods ) ) ) ) ) ) ( ( can ( be ( computed ( through ( a ( mathematical model ) ) ) ) ) ) . ) )
(ROOT (S (S (VP (VBG Balancing) (NP (NP (NP (DT the) (NNS benefits)) (PP (IN of) (NP (NN product) (NN availability)))) (CC and) (NP (NP (DT the) (NN cost)) (PP (IN of) (NP (NP (NP (NN holding)) (PP (IN in) (NP (NN progress)))) (CONJP (RB as) (RB well) (IN as)) (NP (VBN finished) (NNS goods)))))))) (VP (MD can) (VP (VB be) (VP (VBN computed) (PP (IN through) (NP (DT a) (JJ mathematical) (NN model)))))) (. .)))