1 / 20

Material Management Class Note # 2 MPS Practices – Available-to-Promise ( ATP )

Material Management Class Note # 2 MPS Practices – Available-to-Promise ( ATP ). Prof. Yuan-Shyi Peter Chiu Feb. 2012. 1. ~ MPS Practices ~. Order Promising : The process of making order delivery commitments. The delivery date is negotiated

noel-galloway
Download Presentation

Material Management Class Note # 2 MPS Practices – Available-to-Promise ( ATP )

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Material Management Class Note #2 MPS Practices – Available-to-Promise( ATP ) Prof. Yuan-Shyi Peter Chiu Feb. 2012 1

  2. ~ MPS Practices ~ • Order Promising : The process of making order delivery • commitments • The delivery date is negotiated • Whether we can promise delivery on certain date or not ?! • Extended MPS Record • Forecast • Customer orders (actual received) • Projected Available • Available–To–Promise (ATP) • MPS (scheduled shipments) 2

  3. Projected Available = (Beginning inventory) + (MPS shipment) — max. [ (the period’s forecast),(actual customer orders) ] eg. 3

  4. Projected Available eg. (with projected available) 4

  5. ATP (Available–To–Promise) ： The uncommitted portion of a company’s inventory and planned production, maintained in the MPS to support order promising • ATP action bucket : for current period • ATP future : for future replenishment periods 5

  6. ATP action bucket = (beginning inventory ) + (MPS shipment) — (Customer orders before next replenishment) • ATP future = (MPS shipment) — (Customer orders between current MPS shipment and next scheduled replenishment) ＊ATP action bucket = 110 + 0 –(35 + 25) =50 ＊ATP3= 125 – (25 + 20) = 80 6

  7. ＊ATP5 = 125 – (15) = 110 ＊ATP7 = 125 – 0 = 125 ＊ATP8 = 125 – (10) = 115 ＊ATP11 = 125 – (10) = 115 • The ATP records show how much inventory is available to satisfy customer demand, to support order promising 7

  8. Using ATP practices • Example＃1：Can you promise a customer’s purchase of 200 units delivery set in period 5 ？ ＊update customer order in period 5 to 200, below ： ＊update projected available & ATP 8

  9. TWO rules to remember here ◇ rule #1 : A negative number in the projected available row is sometimes a problem ◇ rule #2 : A negative number in the ATP row is always a problem 9

  10. Example＃1：Can you promise a customer’s purchase of 200 units delivery set in period 5 ？ ＊Use uncommitted units in period 3, ATP3 = 80 –80 = 0 and in period 1, ATP1 = 50 –10 = 40 i.e. mark 10 boxes in period 1 & 80 boxes in period 3 & 110 boxes in period 5 with the same client’s name ∴ we can promise a customer’s purchase of 200 units, delivering in period 5 10

  11. Using ATP practices • Example＃2 ：Can you promise next order for 50 units for period 4 delivery ? 11

  12. Example＃2 ：Can you promise next order for 50 units for period 4 delivery ? ＊ Entering 70 in period 4 instead of 20; ∴ ATP 3 =125 – (105 + 70) = -50 & PA4 = 30 – max { 50,70} = -40 & so no for PA5……PA12 By rule #2 : A negative number on ATP is always a problem ! ButNo prior available–to-promise units can satisfy this 50 units. (although APT1=40) Means, everything else has been promised. ∴ We can not accept this purchase order for period 4 the earliest is in period 7 (why?) 12

  13. Using ATP practices • Example＃3：Can you promise an additional order for 50 units to be delivered in period 8 ? • Example＃4 ：An additional 30 units for period 12 ? 13

  14. Example＃3：Can you promise an additional order for 50 units to be delivered in period 8 ? • Example＃4 ：An additional 30 units for period 12 ? Yes, we can accept these orders ! (see above) 14

  15. §.Class Problems & Discussion • Problem #1 : Can you accept an order of 80 units for period 7 ? • Problem #2 : Continues on problem #1 ( using the result from #1 ) Can an additional order for90 units, to be delivered at period 10, be accepted ? • Problem #3 : Continues on problem #2 ( using the result from #2 ) Can you accept an additional purchase order of 75 units for period 9 delivery ? 15

  16. Problem #1 : Can you accept an order of 80 units for period 7 ? Accept the order {i.e. 80 units for period 7 } 16

  17. Problem #2 : Continues on problem #1 (using the result from #1) Can an additional order for90 units, to be delivered at period 10, be accepted ? Accept the order {i.e. 90 units for period 10 } 17

  18. Problem #3 : Continues on problem #2 (using the result from #2) Can you accept an additional purchase order of 75 units for period 9 delivery ? 35 0 18

  19. Problem #3 : Can you accept an additional purchase order of 75 units for period 9 delivery ? Accept the order {i.e. 75 units for period 9 } 19

  20. The End 20

More Related