A master production schedule shows the following information: What is the number of items available to promise for period 2?
A)0.
B)−20.
C)20.
D)None of these.

Question

A master production schedule shows the following information:  What is the number of items available to promise for period 2?
A)0. 
B)−20. 
C)20. 
D)None of these.

Quizplus · Accepted Answer

The available to promise (ATP) for a period is calculated by subtracting customer orders already promised from the starting inventory plus any production planned for the period. From the given information in the question, we can see that the starting inventory for period 2 is 60, and there are customer orders already promised for 40 items. The planned production for period 2 is 0. Therefore, the ATP for period 2 is (60-40) = 20. Hence, the correct answer is C.

A Master Production Schedule Shows the Following Information: What