Operations Management: An Integrated Approach, 5th Edition

USING THE ATP RECORDS

The ATP records show how much inventory is available to satisfy customer demand, so your company bases its delivery promises to customers on these records. Using the completed ATP record in Table D-12, let's look at whether or not your company can promise delivery of a new order.

Suppose that marketing has a customer willing to purchase 200 units if your company can deliver the units in period 5. Using the ATP record, we need to see whether that delivery is possible. One way to do this is to adjust the ATP record as if the order had already been accepted. Table D-13 shows a revised ATP record including the new order.

TABLE D-13 Revised ATP MPS Record

In the customer orders row, 200 units are now scheduled for customer delivery in period 5. This changes the projected available quantities from period 5 onward and changes the ATP quantity in period 5. The two rules to remember here are the following.

“Would you like that delivered soon, pretty soon, or sometime-or-other?”

1. A negative number in the projected available row is sometimes a problem. We calculate the projected available quantity by subtracting the greater of the forecast or the customer orders promised ...