Available-to-Promise (ATP)
The formula for calculating ATP is as follows:
ATP = Master Schedule Receipts – Sales Orders and Required Ship Schedules – Gross Item Requirements – Seasonal Build Net Increases + Season Build Bet Decreases
When demand exceeds supply, ATP for that period is zero. The system applies excess demand as real demand in the following order:
• Excess demand is applied against the ATP quantity for previous periods until all excess demand is eliminated or the ATP quantities for previous periods are exhausted.
• If demand exceeds supply after prior-period ATP is consumed, the system consumes future-period ATP until demand is satisfied or all supply is exhausted.
• When both past and future ATP is exhausted, the system displays a negative ATP quantity for first period.
