A method of monitoring both customer/vendor liability in a supply contract where the customer provides a forecast and the supplier responds to that forecast committing assets/resources for satisfaction of that forecast over multiple forecasting cycles, comprising measuring liability over a set of transactions instead of per transaction basis; assigning Liability measure to both manufacturer and customer instead of just one or the other; aligning liability with financial reporting cycles; introducing a concept of Liability aging to allow for delayed fulfillment of liability over multiple periods.
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