In: Operations Management
3.7. Calculate the available to promise using the following data. There are 90 units on hand. | ||||||||
On-hand inventory | 90 | |||||||
Week | 1 | 2 | 3 | 4 | 5 | 6 | ||
Customer Orders | 70 | 70 | 20 | 40 | 10 | |||
MPS | 100 | 100 | 100 | |||||
ATP | ||||||||
-- Total Customer Orders before Next MPS | ||||||||
-- Temp ATP |
ATP is calculated for 1st Week irrespective of whether MPS is done or not
So For Week 1
On hand Inv. A = 90
Cust. order B =70
MPS C = 0
Therefore ATP = A+C -B as next week we are running MPS and only for 1st week opening stock to be considered
ATP = 90+0-70 = 20
Apart from 1st Week ATP will be calculated only for Weeks where MPS is running
So For Week 2
Cust. order for week 2 --->B =70
MPS C = 100
Customer Orders before Next MPS cycle D = 20
ATP =C -B -D = 100-70-20
ATP = 10
Week 3 No ATP will be calculated as no MPS cycle is getting run in this week
So For Week 4
Cust. order for week 4 ---> B =40
MPS C = 100
Customer Orders before Next MPS cycle D = 10
ATP =C -B -D = 100-40-10
ATP = 50
Week 5 No ATP will be calculated as no MPS cycle is getting run in this week
So For Week 6
Cust. order for week 6 ---> B =0
MPS C = 100
Customer Orders before Next MPS cycle D = 0
ATP =C -B -D = 100-0-0
ATP = 100
Below is the table summary
On-hand inventory | 90 | |||||||
Week | 1 | 2 | 3 | 4 | 5 | 6 | ||
Customer Orders | 70 | 70 | 20 | 40 | 10 | |||
MPS | 100 | 100 | 100 | |||||
ATP | 20 | 10 | - | 50 | - | 100 |