Retailing is and always has been an inefficient business. Retailers, particularly those that operate large chains, have to predict the desires of fickle consumers, buy and allocate complex sets of merchandise, set the right prices, and offer the right promotions for each individual item. Inevitably, there are gaps between supply and demand, leaving stores holding too much of what customers don't want and too little of what they do. Now, however, a new set of software tools promises to revolutionize the entire merchandising chain. These merchandising optimization systems, as they're called, determine the right quantity, allocation, and price of items to maximize retailers' returns. By applying sophisticated data processing techniques to existing inventory and sales data, they accurately model future patterns of supply and demand at the item and store level. In other words, they turn the art of merchandising into a science. Early users of the new software, such as Gymboree and J.C. Penney, are already reporting promising gains in gross margins in the range of 5% to 10%. Retailers are also seeing significant increases in efficiency: At one chain, for instance, planners' productivity rose 20%. Equally important, retailers are showing improvements in customer satisfaction, as shoppers become more likely to find desired merchandise in stock at fair prices. This article provides retailers with a guide to merchandising optimization systems, explaining how they work and how they change processes at each step of the merchandising chain.

In all economies, financial systems perform a basic set of functions, which include the need to pool resources, to save and borrow, to make payments, and to collect information. And yet, in rich and poor communities, the ways in which those needs are met differ greatly. In part, this is because traditional financial service firms have found it too expensive to serve poor neighborhoods. But it is possible to work with less traditional institutions to meet those needs. According to the authors, inner cities face two core impediments to financial services: lack of economies of scale and lack of good information. An inner-city investor with $500, for instance, does not warrant much attention from financial service firms. But twenty thousand parishioners investing $500 apiece can collectively wield $10 million. By partnering with strong social organizations such as churches, financial institutions can benefit both themselves and investors. A lack of good information concerning credit histories--a common problem in poor communities--also makes low-income customers much less appealing to financial institutions. Churches can help close such information gaps by vouching for parishioners' reliability. There are certainly problems that come with mixing business and religion, as the authors concede. Ethical issues, trust issues, and issues of experience all come to mind. But understanding that functions need to dictate the structure of the financial service sector may be the first step toward achieving inner-city prosperity.

GenCorp, a Connecticut-based paper-goods manufacturer, has long supported employee-organized network groups. Its social support group for African-Americans, in fact, has been a particular success, having provided black employees with opportunities to further enhance their careers and helped the company retain top talent, meet its EEO goals, and gain favorable publicity. So when Alice Lawrence, a top accountant at GenCorp, called general manager Bill Thompson about the Christian network group being organized in one of the company's southern plants, Bill hardly flinched. After all, the Christian group was being organized by Russell Kramer, one of the company's most effective plant managers. What could be the problem there? But a couple of years ago, Alice noted, Russell had sent around a companywide letter that talked about the sinful nature of homosexuality. And that letter has made her and other gay and lesbian employees terribly uneasy. To complicate matters, the issue of "Christian rights" in the workplace was being widely discussed on radio talk shows, and several books on the topic had recently been published. An employee had even called the new region's head of human resources to get clarification on the topic. Up until now, GenCorp hadn't placed a lot of restrictions on network groups. But the emergence of a religious group was raising new questions for GenCorp's managers: Should the company accept religious groups or try to stop them? What policy, if any, should GenCorp adopt toward these network groups? In 99405 and 99405Z, Laura Nash, Maureen A. Scully, Gregory Poole, Jr., Jacquelyn Gates, and Kim I. Millis comment on this fictional case study.

GenCorp, a Connecticut-based paper-goods manufacturer, has long supported employee-organized network groups. Its social support group for African-Americans, in fact, has been a particular success, having provided black employees with opportunities to further enhance their careers and helped the company retain top talent, meet its EEO goals, and gain favorable publicity. So when Alice Lawrence, a top accountant at GenCorp, called general manager Bill Thompson about the Christian network group being organized in one of the company's southern plants, Bill hardly flinched. After all, the Christian group was being organized by Russell Kramer, one of the company's most effective plant managers. What could be the problem there? But a couple of years ago, Alice noted, Russell had sent around a companywide letter that talked about the sinful nature of homosexuality. And that letter has made her and other gay and lesbian employees terribly uneasy. To complicate matters, the issue of "Christian rights" in the workplace was being widely discussed on radio talk shows, and several books on the topic had recently been published. An employee had even called the new region's head of human resources to get clarification on the topic. Up until now, GenCorp hadn't placed a lot of restrictions on network groups. But the emergence of a religious group was raising new questions for GenCorp's managers: Should the company accept religious groups or try to stop them? What policy, if any, should GenCorp adopt toward these network groups? In 99405 and 99405Z, commentators Laura Nash, Maureen A. Scully, Gregory Poole, Jr., Jacquelyn Gates, and Kim I. Mills offer advice on this fictional case.