Available To Promise (ATP) (MRP And Supply Chain Planning Help)

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Available to Promise (ATP)

You can monitor and coordinate customer delivery promises using the available to promise information in the Horizontal Plan window and Planning Detail report. The planning process calculates ATP based on the Calculate ATP item attribute. See: MPS/MRP Planning Attribute Group.

ATP is based on a specific MPS, DRP or MRP plan and is non-cumulative. Changes to on-hand quantities, scheduled receipts, and demands made after the planning process is completed are not reflected in ATP until the next time the material plan is executed.

Note: Any ATP calculation done through Oracle Master Scheduling/MRP and Oracle Supply Chain Planning does not consider the ATP rules you define in Oracle Inventory. For instructions on viewing or calculating ATP through Oracle Inventory, see: Viewing ATP Information.

Calculating ATP

Oracle Master Scheduling/MRP and Supply Chain Planning calculates the ATP quantity of an item for each day of planned production by adding planned production during the period (planned orders and scheduled receipts) to the quantity on hand, and then subtracting all committed demand for the period (sales orders, component demand from planned orders, discrete jobs, and repetitive schedules).

Note: Committed demand does not include forecasted demand or manually entered master demand schedule entries. Also, the amount available during each period is not cumulative. Oracle Master Scheduling/MRP and Supply Chain Planning does not consider ATP quantities from prior periods as supply in future periods.

The Available to Promise formula is:

on hand = nettable quantity on hand

supply = planned orders, scheduled receipts (purchase orders, purchase requisitions, and discrete jobs), suggested repetitive schedules

demand = sales orders, component demand (from planned orders, discrete jobs, and suggested repetitive schedules); excludes forecasted demand or manual entries

Suppose you want to see the available to promise information on item A for period 1. After running a plan, you get the following information for item A:

	Beginning Inventory	Period 1	Period 2	Period 3	Period 4
Forecasts		20	40		40
Manual Entries		50		40	10
Sales Orders		40	20		50
Scheduled Receipts		110	40	30	50
Planned Orders		20			50
Nettable On Hand	20
ATP		110	20	30	50
Table 1 - 51. MRP Plan for Item A (Page 1 of 1)

The scheduled receipts (110), planned orders (20), and nettable quantity on hand (20) equal 150 in total supply for period 1. To calculate the total available to promise for period 1, subtract all committed demand from the total supply. The committed demand comes from the following sources: a forecast for 20, a sales order for 40, and a manual entry for 50. Since the forecast and the manual entry are not considered committed demand, but the sales order is, the total committed demand is 40. Therefore, the available to promise is 150 minus 40, or 110 for item B in period 1.

Calculating ATP for Product Family Items

An ATP calculation can be performed at either the product family item level or the member item level. An ATP calculation for the product family item takes into account demand for member items.

Depending on the ATP rule specified in Oracle Inventory, the ATP formula for a member item is:

ATP (member item) = MPS (member item) - SO (member item) + WIP jobs (member item) + PO (member item) + On-hand (member item)

The ATP formula for a product family item is:

ATP (member item) = MPS (product family) - SO (all members) + all demand entries specified in the ATP rule for all members

Notice that the ATP calculation for a product family item does not consider supply for member items.

For example, consider a product family item, PF, consisting of member items I1 and I2. The planning percentages are:

• I1: 40%

• I2: 60%

Also assume that PF has Forecast Control set to Consume, and I1 and I2 both have Forecast Control set to Consume and derive.

Now assume the following forecast and sales order:

• Forecast: PF (F) 100

• Sales Order: I1 (SO) 10

After explosion and consumption, the forecast looks like this:

• Forecast: PF (F) 90

• Forecast: I1 (F) 30

• Forecast: I2 (F) 60

After loading the forecast and sales order to an MDS, the schedule looks like this:

• Schedule: PF (F) 90

• Schedule: PF (SO) 10

• Schedule: I1 (F) 30

• Schedule: I1 (SO) 10

• Schedule: I2 (F) 60

The production plan looks like this:

• Plan: PF (F) 90

• Plan: PF (SO) 10

• Plan: I1 (F) 30

• Plan: I1 (SO) 10

• Plan: I2 (F) 60

The ATP calculation based on this plan looks like this:

• ATP: I1 (PF): 100 - 10 = 90 (I1): 40 - 10 + 0 = 30

• ATP: I2 (PF): 100 - 10 = 90 (I2): 60 - 0 + 0 = 60

Negative ATP

If ATP goes negative in a period, it rolls backwards to find ATP from a previous period to cover the demand.

Consider the following simple example:

	Beginning Inventory	Period 1	Period 2	Period 3	Period 4
Sales Orders		100	300
Scheduled Receipts		300	200
ATP (before adjustment)		200	-100
ATP		100	0
Table 1 - 52. Available to Promise (Page 1 of 1)

The available to promise for period 1 is calculated by subtracting the sales order demand (100) from scheduled receipts (300) giving ATP (200). In period 2, however, when subtracting sales orders (300) from scheduled receipts (200), the initial result is negative ATP (-100). Oracle Master Scheduling/MRP borrows available ATP from the previous period to compensate for the negative quantity.

Inventory Snapshot

Oracle Master Scheduling/MRP and Supply Chain Planning bases ATP information on the:

• snapshot of inventory on hand

• scheduled receipts

• master schedule entries taken during the latest MPS, DRP or MRP plan

Suggestion: You should re-plan the master schedule or material requirements to get the latest ATP information.

Choose whether to display ATP information for an item in the Horizontal Plan window and on the Planning Detail report with the ATP calculation option. Set this option when you define an item.

See Also

Capable to Promise

Supply Chain ATP

Reviewing the Horizontal Plan

Reviewing Current Data

Phases of the Planning Process

Snapshot

Locking Tables within the Snapshot

Locking Tables within the Snapshot Example

Defining Items

Product Families

Calculating Operation Yields

Operation Yields Calculations

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