Cumulative Available to Promise Calculation
Cumulative available to promise (CATP) is a running total of the ATP.
For new products or seasonal products, building inventory might be part of the management strategy. In these cases, sales and marketing might not be expected to sell within the replenishment buckets. The bulk of sales might not be in the near future.
The system calculates CATP like this:
First period CATP = beginning available + replenishment − sum of customer orders and parent demand before the next replenishment.
After the first period, CATP = CATP from last period + replenishment − sum of customer orders and parent demand before the next replenishment.
CATP does not assume complete depletion. Rather, the system continues to add inventory.
The following table displays how the system calculates CATP. Assume that the order policy code equals fixed 60, safety stock equals 0, time fence rule for planning equals C, and lead time equals 1. The planning fence is between periods 4 and 5.
CATP |
Period |
Period |
Period |
Period |
Period |
Period |
Period |
Period |
|---|---|---|---|---|---|---|---|---|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
+BA |
80 |
50 |
25 |
55 |
45 |
25 |
50 |
30 |
–FCST |
20 |
20 |
20 |
20 |
20 |
20 |
20 |
20 |
–SO |
30 |
25 |
30 |
10 |
35 |
|||
=EA |
50 |
25 |
55 |
45 |
25 |
50 |
30 |
10 |
+DRP |
60 |
60 |
||||||
ATP |
25 |
20 |
25 |
|||||
CATP |
25 |
25 |
45 |
45 |
45 |
70 |
70 |
70 |