INVENTORY & WAREHOUSE OPERATIONS
Available to promise (ATP)
Available-to-promise (ATP) is the quantity that can be committed to new demand for a specified date under the system’s supply and allocation rules.
AVAILABLE-TO-PROMISE (ATP) IN PRACTICE
- Check eligible supply
- Deduct commitments
- Confirm a promise date
A WORKED EXAMPLE
120 on hand. 70 for new demand.
Assume 120 eaches are physically on hand, 40 are committed and 10 are held. With no other restrictions, 70 eaches remain eligible for new orders now. A further 60 expected next week should not be offered as immediately available. Whether it supports a future promise depends on the configured supply rules and receipt confidence.
WHAT THIS MEANS FOR YOUR QUOTE
Make the requirement explicit
Use the same scope and units when comparing providers. Put the agreed responsibility, included work and exception process into the service description.
A LITTLE MORE CONTEXT
Questions about Available-to-Promise (ATP)
Can ATP include future receipts?
Yes, where the configured promising rules permit eligible future supply for the requested date.
Does ATP guarantee carrier delivery?
No. Warehouse availability and transport transit time are separate parts of the customer promise.
Source & example notes
Oracle: available-to-promise rules. Further reading on the related controls and terminology. Product documentation describes a particular implementation; it does not establish a universal procedure or service commitment.
Definitions and worked examples are prepared by 3PL Hub. Numbers are illustrative, not provider rates, operating targets or guarantees.
Last updated: · 3PL Hub
