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 Options
You 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 only
ATP 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 available

ATP 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 consumption
ATP consumes backwards first. If the available supply quantity for a period is
not enough to meet the period’s demand, ATP
steps 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 Options

You 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 Days

ATP 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 Days

ATP 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 Fence

Use 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 Window
If 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 Options

You 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, and
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 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 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 '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 9582
Available to Transact 9529
Available to Reservable 9524