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CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control

In a master production schedule (MPS), the 'available-to-promise' (ATP) quantity indicates:

Available-to-promise is the quantity of an item in the master production schedule that is not yet committed to customer orders and can therefore be promised to new orders. It is calculated from scheduled production and opening stock minus booked orders.

  1. AUnits of the item not yet committed to customer orders, which can be offered to new ordersCorrect
  2. BTotal units in the finished goods store at the start of the plan
  3. CUnits of raw material awaiting inspection
  4. DThe safety stock to be held against forecast error

Explanation

ATP equals scheduled MPS receipts (plus opening stock) less customer orders already committed, over the relevant periods. It guides delivery-date promises. It is not total stock or safety stock.

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