Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity.

Question

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Available-to-promise (ATP) in the first week is calculated by taking the beginning inventory plus any Master Production Schedule (MPS) quantity for that week, and then subtracting the committed customer orders that are due before the next MPS quantity becomes available. This calculation helps businesses understand how much inventory is available to promise to new customers without affecting existing commitments.

Available-To-Promise in the First Week Is Equal to Beginning Inventory