Available-to-promise (ATP) quantities are only shown in the first period (if the projected on-hand inventory is greater than zero in the first period), and subsequently in periods when the MPS quantity is greater than 0.

Question

Quizplus · Accepted Answer

This statement is true, as ATP quantities are calculated based on the projected on-hand inventory and scheduled receipts (incoming inventory) in each period. If the projected on-hand inventory is zero or negative, there is no ATP available to promise. ATP is only shown in subsequent periods when the MPS quantity (planned production) is greater than zero and adds to the available inventory.

Available-To-Promise (ATP) Quantities Are Only Shown in the First Period