Available To Promise Definition
Available to Promise (ATP) is the amount of inventory that a company can commit to selling to customers. The term is typically used in reference to manufacturing companies, which use ATP to manage their production levels.
ATP is calculated by taking into account the current inventory levels, upcoming production levels, and any outstanding customer orders. The goal of ATP is to ensure that a company can meet customer demand without over-producing or under-producing.
ATP can be a useful tool for managing inventory and production, but it is important to remember that it is only an estimate. Inventory levels and customer demand can change rapidly, so ATP should be monitored closely and adjusted as needed.
