Use the Available To Promise (ATP) Calculator to calculate the quantity of items / products availabel to 'promise' to a customer based on current stock (on hand), stock in the supply chain and existing demand.
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Available To Promise (ATP) is an inventory management approach used to ensure that customer expectation and satisfaction is managed by correctly identifying and managing inventory on hand and in supply to meet the market demand and supply chain throughput.
When calculated and managed correctly, Available To Promise (ATP) allows businesses to sustain the minimum levels of stock within inventory to:
Most established companies leverage a combination of Push and Pull Available To Promise strategies to manage specific stock/product lines across specific markets/target demographics.
Push Based Available To Promise (PBATP) leverages demand forecast based on historic sales / new sales / growth market models to allow sufficient uplift of stock / increase in supply chain throughput to meet the needs identified above.
Pull Based Available To Promise (PBATP) focuses on the business 'here and now' whereby warehousing and supply chains are fixed / limited and/or demand is unknown (no forecast material or market trend) or unpredictable (subject to unknown quantities such as machinery failure, environmental issues etc.).