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calculations
Production Planning and Control
Tutorial
Abhilash Kulkarni, Charudatta Munde
& Tejas Joshi
Available To Promise
ATP is an important concept in supply chain management,
meaning to quote an available quantity and a delivery date
for an order from a customer.
If we can determine how we allocate (schedule) materials
and resources such as machines and workers to actual
demand and forecast demand, you can quote delivery dates
based on that information.
For ATP in cases of Make to Stock (MTS) where finished
goods inventory exists, we need to allocate the inventory
for an order and calculate the delivery lead time. In cases of
Make To Order (MTO), we need to determine the production
lead time based on a schedule within the range of usable
parts, materials and resources, and determine ATP.