Available to Promise

Calculating the Available to Promise (ATP) is a method of checking the projected supply of an item at a given time.

The basic formula for ATP is ATP quantity = on-hand quantity + supply - demand. Oracle Inventory lets you define different rules that govern what is considered supply

and demand.

In oracle inventory you can view the earliest available date for a specific quantity of an item or a group of items and the available quantity of an item for a specific date.

ATP Rule

To implement available to promise, you begin by defining your ATP rules. ATP rules let you tailor the ATP calculation to suit your business needs. Each rule is a combination of ATP computation options, time fence options, and supply and demand sources to use during an ATP inquiry. You cannot delete an ATP rule, but you can rename or redefine existing rules by updating fields.

You can define multiple ATP rules to reflect the specific needs of your organization, and then use different rules to calculate availability for different items or groups of items. Each time you run an ATP check, the rule determines how existing supply and demand are matched. You can choose one of the ATP rules you define as the default ATP rule for your organization. You can update the item attribute ATP Rule to specify a default ATP rule for each item.

ATP Computation OptionsYou can choose a variety of computation options to suit your business needs. ATP computations use the consumption and accumulate available features. Consumption resolves negative ATP after it is already determined that there is not enough available inventory. Accumulation uses excess inventory from a period to determine where new demand can be placed. You can choose any combination of the following options:Backward consumption onlyATP calculates availability for your item period by period. If the available supply quantity for the period does not meet the existing demand for that period, ATP works backward, period by period, and checks if the available supply within each period is sufficient to meet the excess demand. ATP does not combine the available quantities from multiple periods to meet an existing demand.

Backward consumption and accumulate availableATP accumulates the excess supply from period to period. When demand in a period exceeds supply, this accumulated quantity is dipped into and reduced. When you perform an availability check, the accumulated quantity is available for your demand.Forward consumption and backward consumptionATP consumes backwards first. If the available supply quantity for a period is not enough to meet the period’s demand, ATPsteps back period by period to try to satisfy demand. If the demand cannot be met, ATP then moves forward into future periods to check on available supply.

Keep in mind that the ATP rule applies to existing demand and supply, and determines the quantity available on a period by period basis. Your quantity check is done against the results. ATP does not try to forward consume or backward consume your ATP check quantity.

ATP Time Fence OptionsYou can specify time fences for your ATP rules to restrict the use of both supply and demand. Time fences help you filter the noise out of the ATP calculation. You can implement the following time fence options:

Past Due Demand DaysATP does not include any demand orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due time fence.Use this time fence if you have sales orders, jobs, repetitive schedules, or other demand outstanding with past due dates that you do not plan to fill from existing or planned supply. If the due dates are before the time fence, ATP does not include these orders as demand.

Past Due Supply DaysATP does not include any supply orders with a due date before this time fence. ATP uses the number of manufacturing workdays you enter for this fence to back off from the current system date and determine the past due supply fence.Use this time fence if you have purchase orders, jobs, repetitive schedules or other supply orders with past due dates that you do not want to rely on as a source of supply for your ATP calculations. If the due dates are before the time fence, ATP does not include these orders as supply.

Infinite Supply Time FenceUse this time fence to specify the end of your ATP horizon. ATP considers any demand that falls beyond this time fence as available. Use this time fence as the practical lead time you need to acquire components and build any quantity that a customer may order. You can choose from the following options to determine the infinite supply time fence:• Cumulative manufacturing lead time• Cumulative total lead time• Item total lead time (does not include lead time of components)• User–defined time fence (specify the number of supply days for your rule)

Accumulation WindowIf you choose to accumulate expected surplus in one ATP period to the next, you can limit this accumulation to a specific number of workdays. Oracle Inventory does not treat excess supply as available supply beyond this accumulation window. Oracle Inventory also uses this option in backward consumption calculations, preventing excess supply from a period beyond the accumulation window from covering a shortage in a future period.You can use the accumulation window to prevent the commitment of supply to satisfy demand with requirement dates far into the future. This is particularly useful if you have an item with

high turnover and would likely be able to sell it quickly.

ATP Supply Source OptionsYou can choose the supply sources for each ATP rule. The ATP rule you use during the ATP inquiry then determines which sources of supply to include in the ATP calculation. Note that supply that falls on a non–manufacturing workday is considered available on the next manufacturing workday. All supply must have a scheduled due date within the ATP rule’s past due supply days window.

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

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 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, andthe 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 ATPATP ComponentsThis 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 either at 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 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 Onhand

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 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 CM11062Total Quantity 9582Available to Transact 9579Available to Reservable 9574The 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 'll put a new SO line of qty 50 and we'll verify the quantities after scheduling

Available to transact and available to reserve is reduced by 50 quantity.Total Quantity 9582Available to Transact 9529Available to Reservable 9524