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MailStream Plus - Is it correct that an MAAD letter tray went onto a MNDC pallet with mail that could have gone onto an NDC pallet? Instead of it all going onto a MNDC pallet?

MailStream Plus™, all versions, all platforms
Yes, that can happen for many reasons.  .Here is one example:
(The DMM (Domestic Mail Manual) and Labeling List information below is as-of the Sept 2015 USPS data.)

The Entry Point for the mailing was Springfield MA NDC 05500.
The mail on the MNDC pallet was:
                      Destination    Copies   Bundle                                                                     Cumulative

     PS E-Tr 1        12304   5DGS      457   457 Pcs, 32.84916 Lbs, 0.67835 Cu Ft, 1.80895 Ft                                   457
     PS E-Tr 2        120     3DGS      457   457 Pcs, 32.84916 Lbs, 0.67835 Cu Ft, 1.80895 Ft                                   914
     PS E-Tr 3        12077   5DGS      395   395 Pcs, 28.3926 Lbs, 0.58632 Cu Ft, 1.56354 Ft                                   1309
     PS E-Tr 4        12061   5DGS      392   392 Pcs, 28.17696 Lbs, 0.58187 Cu Ft, 1.55166 Ft                                  1701
     PS E-Tr 5        061     3DG       354   GRP..........118 GRP..........118 GRP..........118                                2055
     PS E-Tr 6        060     3DG       343   GRP..........115 GRP..........114 GRP..........114                                2398
     PS E-Tr 7        12203   5DG       283   GRP...........95 GRP...........94 GRP...........94                                2681
     PS E-Tr 8        12110   5DGS      278   GRP...........93 GRP...........93 GRP...........92                                2959
     PS E-Tr 9        064     3DG       270   GRP...........90 GRP...........90 GRP...........90                                3229
     PS E-Tr 10       12180   5DGS      261   GRP...........87 GRP...........87 GRP...........87                                3490
     PS E-Tr 11       12206   5DGS      245   GRP..........123 GRP..........122                                                 3735
     PS E-Tr 12       12302   5DGS      208   GRP..........104 GRP..........104                                                 3943
     PS E-Tr 13       06050   5DGS      180   GRP...........90 GRP...........90                                                 4123
     PS E-Tr 14       06111   5DGS      161   GRP...........81 GRP...........80                                                 4284
     PS E-Tr 15       12205   5DG       150   GRP...........75 GRP...........75                                                 4434
     PS E-Tr 16       120     3DGS      129   GRP...........65 GRP...........64                                                 4563
     PS E-Tr 17       12304   5DGS       78   GRP...........78                                                                  4641
     RS E-Tr 18       07099   MAAD        4   GRP............4                                                                  4645
   NDC Destination Discount            4645   18 Trays, 32 Bdls, 4645 Pcs, 333.8826 Lbs, 6.89492 Cu Ft, 18.38645 Ft

   Pallet 1           05500 MNDC       4645   18 Trays, 32 Bdls, 4645 Pcs, 333.8826 Lbs, 6.89492 Cu Ft, 18.38645 Ft

   
The CP FRC and CP MIN in the job were set to make NDC-level pallets with 00018 trays.
Without that MAAD tray, that only leaves 17 trays, so an NDC-level pallet could not be made.

The DMM (705.8.10.3g) does allow the option to put MAAD trays on NDC pallets.  This option is controlled in MailStream Plus™ by ALG PL position 34.  The default is N=no, but in this job it was set to Y for yes. 
The DMM says it allowed when- 
1) The mail pieces in the tray are to the NDC's area 
*and* 
2) L010 says to label the tray to one of the ZIP Codes in the NDC's area. 


For the Springfield NDC entry point, Labeling List L010 says to label MAAD trays to 07099. And 07099 is *not* in the Springfield NDCs area per Labeling List L601.
Comparing L010 and L601, it seems several (or most) NDCs *do* accept mixed-level trays on NDC pallets, and for those NDCs L010 labels the mixed-tray to one of the NDC's L601 ZIP Codes.

(It may be that the Springfield NDC is more of a transfer spot, and doesn't have the machinery to process MAAD trays there.  But for whatever USPS reason, at that entry point MAAD trays get labelled to 07099 New Jersey.)

*If* the MAAD tray would have been able to go on the NDC pallet, then the 18 trays would have gone onto that pallet. But ultimately for this NDC entry point, it wasn't until MSP got to the MNDC pallet level that it could combine the first 17 trays and the 1 MAAD tray, and have the 18-tray quantity to make the MNDC pallet.
UPDATED:  May 14, 2019