Which of these correctly explains the relationship between available to promise inventory and the master production schedule for the first week of the schedule when production is scheduled? Note that ATP is available to promise, MPS is master production schedule, EI is ending inventory, and OB is orders booked.

Question

Quizplus · Accepted Answer

Available to promise (ATP) is the quantity of inventory that is available to be promised to customers during a specific period. The ending inventory (EI) and orders booked (OB) for the period must be subtracted from the master production schedule (MPS) to determine the amount of inventory that is available for customer orders (ATP). Therefore, the correct equation is ATP = EI + MPS - $\sum O B$.

Which of These Correctly Explains the Relationship Between Available to Promise