SQLSTATE[HY000] [1040] Too many connections Available-to-promise


Available-to-promise

Available-to-promise (ATP) is a business function that provides a response to customer order enquiries, based on resource availability. [Ball, M.O. et al. (2004), "Available to Promise" in "Handbook of Quantitative Supply Chain Analysis - Modeling in the E-Business Era", Kluwer] It generates available quantities of the requested product, and delivery due dates. Therefore, ATP supports order promising and fulfillment, aiming to manage demand and match it to production plans. Available-to-promise functions are IT-enabled and usually integrated in enterprise management software packages. However, ATP execution may need to be adjusted for the way a certain company operates.

Classification

A fundamental distinction between ATP functions is based on the push-pull strategy. Push-based ATP is based on forecasts regarding future demand - based on anticipation of demand, ATP quantities and availability dates are computed. A prominent example is the traditional determination of ATP based on the Master Production Schedule. The push-based approach is fundamentally limited by dependence on forecasts, which may prove inaccurate.

Pull-based models, on the other hand, dynamically allocate resources in response to actual customer orders. This means that pull-based ATP is able to balance forecast-driven resource replenishment with order-triggered resource utilization [Zhao, Z. (2005), "Optimization-based Available-to-promise with Multi Stage Resource Availability", Annals of Operations Research 135, 65-85] , but because resources are allocated with each coming order, the process will yield myopic results.

ATP Execution

ATP functions can be executed in real-time, driven by each individual order, or in batch-mode – meaning that at a certain time interval, the system checks availability for orders piled up in that period of time. The process is triggered by the need to check resource availability before making a commitment to deliver an order. For example, ATP calculation using SAP software depends on the level of "stock, planned receipts (production orders, purchase orders, planned orders and so on), and planned requirements (sales orders, deliveries, reservations etc.)"

References

External links

* [http://help.sap.com/saphelp_scm50/helpdata/en/b2/887941a51a1809e10000000a155106/frameset.htm SAP Library on Product Availability Check using ATP]
* [http://www.oracle.com/applications/planning/ds_global_order.pdf Oracle Data Sheet on Available-to-promise (pdf file)]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Available-to-promise — (deutsch: zusicherbarer Bestand) bezeichnet die betriebswirtschaftliche Fragestellung, ob eine bestimmte Menge eines Materials oder Produkts zu einem Bedarfstermin zur Verfügung steht oder ob gegebenenfalls das Material zu einem späteren… …   Deutsch Wikipedia

  • Capable-to-Promise — bezeichnet die betriebswirtschaftliche Fragestellung, ob eine bestimmte Menge eines Produkts zu einem gewünschten Bedarfstermin zur Verfügung stehen wird. Im Gegensatz zu Available to Promise wird zur Beantwortung dieser Frage nicht nur der… …   Deutsch Wikipedia

  • Capable-to-promise — bezeichnet die betriebswirtschaftliche Fragestellung, ob eine bestimmte Menge eines Produkts zu einem gewünschten Bedarfstermin zur Verfügung stehen wird. Im Gegensatz zu Available to Promise wird zur Beantwortung dieser Frage nicht nur der… …   Deutsch Wikipedia

  • The Promise (Girls Aloud song) — Infobox Single Name = The Promise Artist = Girls Aloud from Album = Out of Control B side = SheGirl Overboard (Live at The O2) Released = 19 October 2008 (download) 20 October 2008 (CD) Format = CD Digital download 7 Picture Disc Recorded =… …   Wikipedia

  • Michigan Promise Scholarship — logo The Michigan Promise Scholarship was a merit based scholarship program in the state of Michigan that provided up to $4,000 towards post secondary education at any approved Michigan institution to qualifying Michigan high school graduates.[1] …   Wikipedia

  • I Promise (album) — Infobox Album Name = I Promise Type = studio Artist = Jin Released = November 1 2006 Recorded = 2006 Genre = East Coast hip hop Length = 50:36 Label = Crafty Plugz Producer = Jin (Exec.) Kamel Pratt (Exec.) Pluto Flaco Da Great Obi Josh Hektic… …   Wikipedia

  • Dragon Ball Z Complete Song Collection 4: Promise of Eternity — Box set by Various Artists Released April 23, 2003 ( …   Wikipedia

  • John F. Kennedy: The American Promise to African Americans — ▪ Primary Source              On June 11, 1963, a momentous event occurred at the University of Alabama. Two African American residents of Alabama, who were clearly qualified for studies at the state s highest institution of learning, had been… …   Universalium

  • Master production schedule — Contents 1 What is Master Production Schedule or MPS? 2 How an MPS works 3 Production plan 4 See also 5 …   Wikipedia

  • Advanced Planner & Optimizer — Bei dem Advanced Planner Optimizer (APO) handelt es sich um die Software der Firma SAP für Supply Chain Management. Im Gegensatz zu dem Hauptprodukt der SAP, dem Programm R/3 bzw. seinem Nachfolger mySAP ERP, werden im APO nur planungsrelevante… …   Deutsch Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.