Practice Quiz

Supply Chain Management

Category - Inventory

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____________________ is that portion of a firm's inventory and planned production that is not already committed and is available to the customer.
  1. Available-to-promise
  2. Available-to-produce
  3. Safety stock
  4. None of these.
Explanation
Answer: A - Available-to-promise (ATP) is a business function that provides a reply to customer order enquiries based on the resources that are currently available. It creates available quantities of the requested product and delivery due dates. ATP supports order fulfillment, aiming to manage demand and match it to production plans.
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