How Do You Spell AVAILABLE TO PROMISE?

Pronunciation: [ɐvˈe͡ɪləbə͡l tuː pɹˈɒmɪs] (IPA)

"Available to Promise" is a term used in supply chain management to refer to the quantity of a product that is currently available for order. The spelling of this phrase can be broken down phonetically as /əˈveɪləbəl/ /tuː/ /ˈprɒmɪs/. This breaks it down into three syllables, with the emphasis on the second syllable of "available" and the first syllable of "promise". The spelling reflects the standard English pronunciation of these words, with minor variations in stress and vowel sounds.

Meaning and Definition
Basic Check Advanced Check

AVAILABLE TO PROMISE Meaning and Definition

  1. "Available to Promise" (ATP) is a term commonly used in supply chain management and inventory control to describe the availability of a product or service to fulfill customer demand at a given point in time. It refers to the quantity of items that can be promised to customers for delivery within a specific timeframe, taking into account existing inventory levels and pending orders.

    ATP provides a real-time assessment of the amount of an item that is currently available for delivery to customers. It considers several factors such as current inventory levels, incoming shipments, and existing customer orders. By combining these factors, companies can determine the quantity of a product that can be allocated for new orders without causing stockouts or delays in deliveries.

    The ATP calculation involves subtracting existing customer commitments (firm orders) from the available inventory stock on hand, accounting for any pending incoming shipments. The resulting quantity represents the number of items that can be promised to new customers. This information is crucial in managing customer expectations, optimizing inventory levels, and maintaining efficient order delivery processes.

    By implementing an ATP system, businesses can enhance customer satisfaction, reduce lead times, and minimize stockouts. Accurate ATP numbers allow companies to provide customers with accurate delivery dates and make informed decisions regarding order acceptance and fulfillment. Additionally, ATP calculations can be combined with other supply chain metrics to provide a holistic view of inventory management and resource allocation.