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).