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)))) (. .)))
The state of demand is used to determine inventory levels on a SKU basis which finds an equilibrium between benefits of product availability and cost of holding inventories.
( ( ( The state ) ( of demand ) ) ( ( is ( used ( to ( ( determine ( inventory levels ) ) ( on ( ( a ( SKU basis ) ) ( which ( finds ( ( ( an equilibrium ) ( between ( benefits ( of ( product ( ( availability and ) cost ) ) ) ) ) ) ( of ( holding inventories ) ) ) ) ) ) ) ) ) ) ) . ) )
(ROOT (S (NP (NP (DT The) (NN state)) (PP (IN of) (NP (NN demand)))) (VP (VBZ is) (VP (VBN used) (S (VP (TO to) (VP (VB determine) (NP (NN inventory) (NNS levels)) (PP (IN on) (NP (NP (DT a) (NNP SKU) (NN basis)) (SBAR (WHNP (WDT which)) (S (VP (VBZ finds) (NP (NP (DT an) (NN equilibrium)) (PP (IN between) (NP (NP (NNS benefits)) (PP (IN of) (NP (NN product) (NN availability) (CC and) (NN cost))))) (PP (IN of) (NP (VBG holding) (NNS inventories)))))))))))))) (. .)))