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Calculating Available To Promise (ATP) : Current On-Hand Inventory Plus The Expected Incoming Supply and Outgoing Demand

Oracle Order Management enables calculating Available to Promise (ATP) based on current inventory, incoming supply, and outgoing demand. Calculating ATP requires inputting an item, order quantity, unit of measure, and request date. ATP can be calculated for a single line, group of lines, or full order. The results include available date, warehouse, on-hand and reservable quantities, and error messages. Proper item setup, ATP rules, sourcing rules, and data collection are required for ATP calculations.

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690 views6 pages

Calculating Available To Promise (ATP) : Current On-Hand Inventory Plus The Expected Incoming Supply and Outgoing Demand

Oracle Order Management enables calculating Available to Promise (ATP) based on current inventory, incoming supply, and outgoing demand. Calculating ATP requires inputting an item, order quantity, unit of measure, and request date. ATP can be calculated for a single line, group of lines, or full order. The results include available date, warehouse, on-hand and reservable quantities, and error messages. Proper item setup, ATP rules, sourcing rules, and data collection are required for ATP calculations.

Uploaded by

ajaykheldar123
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Created By: Ajay Kheldar Date: 12-02-2011

Calculating Available to Promise (ATP)


Oracle Order Management enables you to advise your customers when items will be available based on
current on-hand inventory plus the expected incoming supply and outgoing demand.

Calculating ATP requires as input the item, the order quantity, the order quantity unit of measure and
the request date. In general the user will enter the item and order quantity on every order line. The
request date and order quantity unit of measure may be defaulted or manually entered. ATP may be
calculated for a single line, a group of lines, or a complete order. The results for a single line are
displayed in a single column in a small window. The results for multi-line ATP are displayed in a table
Created By: Ajay Kheldar Date: 12-02-2011

 Warehouse: Either the warehouse on the order line or, if the warehouse on the order line was
blank, the best warehouse as selected by the sourcing rules.
 Request Date Qty: The quantity that is available on the requested date
 Available: The order quantity, if ATP was successful. The available quantity, which will be less
than the order quantity, if ATP was not successful.
 On-hand Qty: The quantity that is currently in the warehouse.
 Qty Reservable: The on-hand quantity minus the quantity that is already reserved to other
sources of demand.
 Request Date: The date on the order line.
 Available date: The date that the ordered quantity will be available. It could be the request date
if the order quantity is available on the request date, or it might be a future date when the order
quantity will be available
 Error Message: Any error that occurred in calculating ATP. For example, if the Check ATP flag for
the item is not selected then this field will display ATP not applicable.
 Substitute Item: If the requested item is not available and the requested quantity for a defined
substitute is available, the substitute item will be displayed. An additional tab, showing the
availability of the substitute item, is also displayed.displayed for single items. A multi-line
window displays availability information for sets and models.

Clicking the Global Availability button located at the bottom of the Availability window opens the ATP
window that has the list of warehouses where the item is enabled. You can select the warehouses for
which you want to see the availability, and
Created By: Ajay Kheldar Date: 12-02-2011

the system will return the availability in all the selected warehouses.
ATP is calculated automatically during scheduling, and may be calculated manually by clicking
Availability on the Line Items tab of the Sales Order window. There are several steps required for ATP
calculations.

1. Ensure items and options you wish to perform ATP inquires against have the following items
attributes properly set:
Check ATP
ATP Components
This includes ATP flag within a Bills of Materials.

2. Ensure that ATP rules have been defined and set. You can define ATP Rules and assign them as
defaults at the organization, subinventory, or item level.

3. Define your item Sourcing Rules and any Assignment sets you wish to use. You can define Sourcing
Rules within Oracle Supply Chain Planning, Sourcing Rules window. If you do not have Oracle Supply
Chain Planning fully installed, you cannot define Sourcing Rules. You may, however, define simple
sourcing information at either the item level and the organization levels.

4. Define the Organizations and Application Instance Ids you will wish to collect source ATP data entities
from. ATP Inquiries are performed against a common data store within an application instance.

5. Optionally, determine if you wish to enable item substitutions.


If you are using ASCP, supply/demand is set up at the plan level. Global Order Promising will only use the
infinite time fence
specified on the ATP rule.

If you are using ASCP, supply/demand is set up at the plan level. Global Order Promising will only use the
infinite time fence specified on the ATP rule.

If you are not using ASCP, ATP rules must be defined to determine the sources of supply and demand
which are included in the calculation. The ATP rules must be associated with items and/or inventory
organizations. Also, the data collection program must be run. There is a requirement for ATP
calculations to be very fast; some customer service representatives will need to give this information to
customers on the phone. However, considering all the possible sources of supply and demand for an
ATP calculation can be very complex. Therefore, a concurrent process known as data collection must be
run to summarize the supply and demand picture. This program is part of the Oracle Advanced Planning
and Scheduling application. The ATP calculation is then performed on the summary tables. For details
about setting up ATP rules and running the data collection program, see the setup section of this
document.

Item On-hand

 Total On hand - Sum of unreserved and reserved items in inventory.


Available to transact - Sum of unreserved and soft reserved items in inventory(items against
Created By: Ajay Kheldar Date: 12-02-2011

which reservation and scheduling is done but pick confirm not)


Available to transact - Only unreserved quantity
 Relationship Total On hand >= Available to transact >= Available to reserve

 For the item CM11062


Total Quantity 9582
Available to Transact 9579
Available to Reservable 9574
the difference between available to reserve and available to transact exists because some of the
items might be present in a subinventory which is not reservable like stockfloor, from where
transactions can be done.

 We 'will put a new SO line of qty 50 and 'll verify the quantities after scheduling
Created By: Ajay Kheldar Date: 12-02-2011

 Available to transact and avialbe to reserve is reduced by 50 quantity.


Total Quantity 9582
Available to Transact 9529
Created By: Ajay Kheldar Date: 12-02-2011

 Available to Reservable 9524

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