DRP - Available to Promise FAQ

Question: What is the setup for Available to Promise in DRP?

Answer: In Forecast Method Maintenance, change the Available to Promise parameter to a valid value other than Standard, and change the Available To Promise Days parameter to a valid value other than 0.

Note The parameter names must be entered exactly as listed for the calculations to work properly. These same parameter names can be used for different forecast methods.

Parameter	Type	Value	Description
Available to Promise	Character	Standard	The standard Available to Promise window is displayed.
Available to Promise	Character	Option 1	Certain companies want to protect availability for forecasted sales X days in the future. So if an order line goes on forecast hold, you need to determine whether an available to promise date can be given within that X day time frame using the Option 1 logic.
Available To Promise Days	Integer	Any integer	The value can be any number of days.

Option 1 Available to Promise logic works as follows:

Step	Comments
Start with quantity on-hand	All subsequent entries are in chronological date sequence, going X days (the Available To Promise Days parameter) into the future.
Subtract the total remaining forecast by forecast period	This is the sum of each forecast group’s forecast minus sales for each month (if sales exceed the forecast, then 0).
Subtract the excess sales orders by forecast period	This is the excess by forecast group. Example If forecast group ABC has a remaining forecast for 1,000 in period 1, and sales orders of 1,200 for the same period, then excess sales orders are 200.
Add the incoming orders	Incoming orders include purchase orders, transfer orders, and work orders.
Compare the order quantity to the final available to promise quantity	If order quantity > available to promise quantity, then no available to promise can be given.
Determine the best available to promise date	Working in reverse chronological order, keep going back until the order quantity < available to promise quantity. Then use the subsequent available to promise date.

Example The Available To Promise Days parameter is set to 90, and your company has the following data:

Required Date	Reference Number	Type	Quantity	Available to Promise
8/5/2020		Initial Quantity on Hand	900	900
8/5/2020	DRP	Total Remaining Forecasts (Aug/2020)	2,000	(1,100)
8/6/2020		Excess Sales Orders not on Forecast Hold (Aug/2020)	100	(1,200)
8/7/2020	NJ.2232	Purchase Order (Expected Receipt)	3,000	1,800
9/1/2020		Excess Sales Orders not on Forecast Hold (Sep/2020)	500	1,300
9/1/2020	DRP	Total Remaining Forecasts (Sep/2020)	5,000	(3,700)
9/15/2020	NJ.2287	Purchase Order (Expected Receipt)	10,000	6,300
10/1/2020	DRP	Total Remaining Forecasts (Oct/2020)	5,000	1,300
10/12/2020	NJ.2355	Purchase Order (Expected Receipt)	6,000	7,300
11/1/2020	DRP	Total Remaining Forecasts (Nov/2020)	5,000	2,300

An order for 1,000 units of product 123 from shipping location XYZ can be promised on 9/15/2020 (working in reverse chronological order, 1,000 is less than the available to promise quantities of 2,300, 7,300, 1,300, and 6,300).

An order for 5,000 units of product 123 from shipping location XYZ cannot be promised (available to promise quantity at the end of 90 days is only 2,300)

An order for 2,000 units of product 123 from shipping location XYZ can be promised on 10/12/2020 (2,000 is less than the available to promise quantities of 2,300 and 7,300).