Available To Promise (ATP)

What is Available to Promise (ATP)?

Available to Promise (ATP) is a crucial term in production planning and logistics that refers to the quantity of products a company can promise to deliver to a customer at a specified time. ATP is based on current inventory levels and planned production capacities, and it plays a key role in optimizing order fulfillment and inventory management.

Importance of ATP in Production Planning

The ATP calculation enables companies to accurately determine their product availability by considering current stock levels, incoming customer orders, and planned production. This allows businesses to make informed decisions about whether and when a product can be delivered, avoiding both overstocking and underproduction.

Benefits of ATP

1. Efficient Order Fulfillment: ATP ensures that only achievable delivery commitments are made, reducing the risk of delays or shortfalls.
2. Optimized Inventory Management: By aligning inventory levels with actual demand, ATP minimizes excess stock and helps streamline production.
3. Increased Customer Satisfaction: Accurate delivery promises foster customer trust and ensure timely deliveries.
4. Improved Production Planning: ATP supports more efficient use of production resources and aligns manufacturing processes with demand.

ATP and OEE in Production

In production environments, ATP is closely linked to Overall Equipment Effectiveness (OEE). Accurate ATP calculations help ensure that production capacities are fully utilized, preventing machine downtime and idle capacity. This directly improves OEE by enabling better planning of production processes and more efficient use of resources.