Available to Promise (ATP)

You can monitor and coordinate customer delivery promises using the available to
promise information in the Horizontal Plan window and Planning Detail report.
The planning process calculates ATP based on the Calculate ATP item attribute.
See: MPS/MRP Planning Attribute Group.
ATP is based on a specific MPS, DRP or MRP plan and is non-cumulative.
Changes to on-hand quantities, scheduled receipts, and demands made after the
planning process is completed are not reflected in ATP until the next time the
material plan is executed.
Note: Any ATP calculation done through Oracle Master Scheduling/MRP and
Oracle Supply Chain Planning does not consider the ATP rules you define in Oracle
Inventory. For instructions on viewing or calculating ATP through Oracle
Inventory, see: Viewing ATP Information.
Calculating ATP
Oracle Master Scheduling/MRP and Supply Chain Planning calculates the ATP
quantity of an item for each day of planned production by adding planned
production during the period (planned orders and scheduled receipts) to the
quantity on hand, and then subtracting all committed demand for the period (sales
orders, component demand from planned orders, discrete jobs, and repetitive
schedules).
Note: Committed demand does not include forecasted demand or manually entered
master demand schedule entries. Also, the amount available during each period
is not cumulative. Oracle Master Scheduling/MRP and Supply Chain Planning
does not consider ATP quantities from prior periods as supply in future periods.
The Available to Promise formula is:

on hand = nettable quantity on hand

supply = planned orders, scheduled receipts (purchase orders,
purchase requisitions, and discrete jobs), suggested repetitive
schedules
demand = sales orders, component demand (from planned orders,
discrete jobs, and suggested repetitive schedules); excludes forecasted
demand or manual entries

Suppose you want to see the available to promise information on item A for period
1. After running a plan, you get the following information for item A:
Beginning Inventory

Period 1 Period 2 Period 3 Period 4

Forecasts

20

Manual Entries

50

Sales Orders

40

20

Scheduled Receipts

110

40

Planned Orders

20

Nettable On Hand
ATP

40

40
40

10
50

30

50
50

20
110

20

30

50

Table 1 - 51. MRP Plan for Item A (Page 1 of 1)

The scheduled receipts (110), planned orders (20), and nettable quantity on hand
(20) equal 150 in total supply for period 1. To calculate the total available to
promise for period 1, subtract all committed demand from the total supply. The
committed demand comes from the following sources: a forecast for 20, a sales
order for 40, and a manual entry for 50. Since the forecast and the manual entry are
not considered committed demand, but the sales order is, the total committed
demand is 40. Therefore, the available to promise is 150 minus 40, or 110 for item
B in period 1.
Calculating ATP for Product Family Items
An ATP calculation can be performed at either the product family item level or the
member item level. An ATP calculation for the product family item takes into
account demand for member items.
Depending on the ATP rule specified in Oracle Inventory, the ATP formula for a
member item is:
ATP (member item) = MPS (member item) - SO (member item) + WIP jobs
(member item) + PO (member item) + On-hand (member item)
The ATP formula for a product family item is:
ATP (member item) = MPS (product family) - SO (all members) + all demand
entries specified in the ATP rule for all members
Notice that the ATP calculation for a product family item does not consider supply
for member items.

For example, consider a product family item, PF, consisting of member items I1
and I2. The planning percentages are:
o I1: 40%
o I2: 60%
Also assume that PF has Forecast Control set to Consume, and I1 and I2 both have
Forecast Control set to Consume and derive.
Now assume the following forecast and sales order:
o Forecast: PF (F) 100
o Sales Order: I1 (SO) 10
After explosion and consumption, the forecast looks like this:
o Forecast: PF (F) 90
o Forecast: I1 (F) 30
o Forecast: I2 (F) 60
After loading the forecast and sales order to an MDS, the schedule looks like this:
o Schedule: PF (F) 90
o Schedule: PF (SO) 10
o Schedule: I1 (F) 30
o Schedule: I1 (SO) 10
o Schedule: I2 (F) 60
The production plan looks like this:
o Plan: PF (F) 90
o Plan: PF (SO) 10
o Plan: I1 (F) 30
o Plan: I1 (SO) 10

o Plan: I2 (F) 60
The ATP calculation based on this plan looks like this:
o ATP: I1 (PF): 100 - 10 = 90 (I1): 40 - 10 + 0 = 30
o ATP: I2 (PF): 100 - 10 = 90 (I2): 60 - 0 + 0 = 60
Negative ATP
If ATP goes negative in a period, it rolls backwards to find ATP from a previous
period to cover the demand.
Consider the following simple example:
Beginning Inventory Period 1 Period 2 Period 3 Period 4
Sales Orders

100

300

Scheduled Receipts

300

200

ATP (before adjustment)

200

-100

ATP

100

Table 1 - 52. Available to Promise (Page 1 of 1)

The available to promise for period 1 is calculated by subtracting the sales order
demand (100) from scheduled receipts (300) giving ATP (200). In period 2,
however, when subtracting sales orders (300) from scheduled receipts (200), the
initial result is negative ATP (-100). Oracle Master Scheduling/MRP borrows
available ATP from the previous period to compensate for the negative quantity.
Inventory Snapshot
Oracle Master Scheduling/MRP and Supply Chain Planning bases ATP information
on the:
o snapshot of inventory on hand
o scheduled receipts
o master schedule entries taken during the latest MPS, DRP or MRP
plan

Suggestion: You should re-plan the master schedule or material requirements to

get the latest ATP information.
Choose whether to display ATP information for an item in the Horizontal Plan
window and on the Planning Detail report with the ATP calculation option. Set this
option when you define an item.