Posted in Operations and Supply Chain Terms, Total Reads: 12874
Definition: Available to Promise (ATP)
Available to Promise (ATP) is a business function, part of the supply chain which pertains to the customer enquiries. It is responsible to provide the customers with the available quantities of the requested product and the corresponding due dates for them to expect delivery.
ATP can further be categorised based on the push/pull strategy being used for production.
In case of a push strategy, the available quantities and the due dates are computed based on the demand forecasts. Master Production Schedule (MPS) is of maximum utility during such an ATP.
In case of a pull strategy, the availability of material and the expected due dates are computed only when a customer order is received. In this case, due to it being more of a responsive ATP, a real time ATP is more favoured.