#1 Manufacturing Glossary - SYMESTIC

Available To Promise (ATP)

Written by Symestic | Apr 25, 2024 12:58:45 PM

ATP, short for Available to Promise, is an important term in production planning and logistics that indicates the available quantity of a product that a company can promise a customer. This concept is crucial for efficient order fulfillment and inventory management.

ATP calculations help companies to optimize the delivery capability of their products by determining the quantity of products that are immediately available or can be produced at short notice based on current stock levels and planned production. This makes it possible to respond precisely to customer inquiries and make realistic delivery promises, which increases customer satisfaction while minimizing excess stock.