# 5.7.2 Exercise: Available-to-Promise (ATP)

### Intended learning outcomes: Calculate the quantity available-to-promise (ATP), whereupon the master production schedule as well as a list of customers’ orders that have already been promised are given.

Sales employees in your company would like to know whether their customers’ orders for can openers can be fulfilled. In long-term planning for the next half-year, you have put up the master production schedule provided below. Furthermore, your sales department has given you a list of customers’ orders that have already been promised. At the beginning of the year, you have 800 can openers in stock.

Master Production Schedule:

Promised orders: 1200 pieces on February 14, 1400 pieces on April 5, 450 pieces on June 9.

How many can openers can your sales employees promise to customers in the next six months? (Assume that the amount planned to be produced in the master production schedule is available at the beginning of each month.)

Is the master production schedule feasible?

Yes, because in each period cumulative ATP is greater than zero.

On January 7, a customer asks for 600 can openers to be delivered instantly. How do you react?

Though the amount the customer asks for is generally available, fulfilling this order would mean that the company would not be able to accept any further orders for four months, from January to April. Your decision will depend on how likely it is that this would result in the loss of long-term customers.

## Course section 5.7: Subsections and their intended learning outcomes

• ##### 5.7 Scenarios and Exercises

Intended learning outcomes: Disclose master scheduling for product variants. Calculate the quantity available-to-promise (ATP). Examine an example of the theory of constraints. Elaborate the master planning case.

• ##### 5.7.1 Exercise: Master Scheduling and Product Variants

Intended learning outcomes: Determine the degree of overplanning of the number of variants in in the master production schedule (MPS).

• ##### 5.7.2 Exercise: Available-to-Promise (ATP)

Intended learning outcomes: Calculate the quantity available-to-promise (ATP), whereupon the master production schedule as well as a list of customers’ orders that have already been promised are given.

• ##### 5.7.3 Exercise: Theory of Constraints

Intended learning outcomes: Explain an example of the theory of constraints, whereupon you produce two products, which use the machine capacity of three machines with a certain load. Identify and speed up the bottleneck.

• ##### 5.7.4 Scenario: Master Planning Case —  Introduction and Sales Plan

Intended learning outcomes: Present the case study — company and products, as well as the sales plan.

• ##### 5.7.4b Scenario: Master Planning Case —  Production Plan and Inventory Plan

Intended learning outcomes: Work out and explain various variants of the production plan and inventory plan on the basis of a long-term sales plan of a company in the wood industry.

• ##### 5.7.4c Scenario: Master Planning Case — Procurement Plan and Animated Solution

Intended learning outcomes: Work out and explain the resulting procurement plan, on the basis of a long-term sales plan of a company in the wood industry. Enjoy the Animated Solution.