Question

What is Available To Promise? How to calculate it? Why it is important in making a Master Schedule planning?

Answer 1

Available to promise is a supply chain term which provides response to the customers orders according to the availability of the inventory. It will tell the due delivery dates and available inventory.

Master Schedule planning is important because it controls the timings and the production of products for inventory management(delivery times). Master Schedule planning must be feasible for the operations.It help in matching the operations with the supply chain capability, that is why Master Schedule planning is very important.

For calculation refer the image provided with the answer.