<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000332" xml:lang="en">
   <Header>
      <Title>To compute cumulative ATP</Title>
      <Keyword type="header" order="d1e198996">
         <Level1>To compute cumulative ATP</Level1>
      </Keyword>
      <Keyword type="header" order="d1e198999">
         <Level1>Cumulative ATP</Level1>
      </Keyword>
      <Keyword type="header" order="d1e199002">
         <Level1>ATP</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <List>
         <ListIntro>In the <GUIRef href="/baanerp/cp/rmp/cprmp2101m000" role="session">Item Master Plan (cprmp2101m000)</GUIRef> session, there are several fields that give an
        indication of the item quantity that is still available at a certain point in
        time:</ListIntro>
         <ListItem> 
            <Link href="/baanerp/cp/glossary/glossary#000046" role="glossary">Projected inventory</Link>
         </ListItem>
         <ListItem> 
            <Link href="/baanerp/cp/glossary/glossary#000030" role="glossary">Available-to-promise</Link>
         </ListItem>
         <ListItem> 
            <Link href="/baanerp/cp/glossary/glossary#000040" role="glossary">Cumulative ATP</Link>
         </ListItem>
      </List>
      <Paragraph>The projected inventory
      shows the inventory level as it is expected on the basis of the previous
      inventory, the expected demand, and the planned supply (see also <Link href="/baanerp/cp/onlinemanual/000139" role="manual">To compute the projected inventory</Link>).</Paragraph>
      <List>
         <ListIntro>The available to promise (ATP) is an indicator of inventory
        availability that is specifically geared to the process of order acceptance. In
        the <GUIRef href="/baanerp/cp/rmp/cprmp2101m000" role="session">Item Master Plan (cprmp2101m000)</GUIRef> session, the ATP is shown in two formats:</ListIntro>
         <ListItem>The ATP for one plan
        period</ListItem>
         <ListItem>The cumulative ATP</ListItem>
      </List>
      <GeneralSection>
         <SectionTitle>To compute the cumulative ATP</SectionTitle>
         <Paragraph>A plan period's
        cumulative ATP indicates the item quantity that you can still promise to
        deliver to a customer in that plan period.</Paragraph>
         <Paragraph>The cumulative ATP differs from the ATP in several
        respects:</Paragraph>
         <List>
            <ListItem>The cumulative ATP also takes the (cumulative) ATP of the
          previous period into account.</ListItem>
            <ListItem>The cumulative ATP can become negative.</ListItem>
            <ListItem>The cumulative ATP is corrected for supply deficiencies in
          the future (that is, plan periods in which the actual demand exceeds the
          planned supply).</ListItem>
         </List>
         <Paragraph>To a certain extent, the computation of the cumulative ATP is
        similar to the computation of the projected inventory. However, some key
        differences exist:</Paragraph>
         <List>
            <ListItem>The computation of cumulative ATP considers actual demand
          only, whereas the computation of projected inventory uses <Link href="/baanerp/cp/glossary/glossary#000043" role="glossary">nonconsumed demand forecast</Link> as well.</ListItem>
            <ListItem>The cumulative ATP is corrected for future drops (in periods
          in which the actual demand is higher than the planned supply), whereas the
          projected inventory is not.</ListItem>
         </List>
         <Paragraph>The computation of cumulative ATP can be described as a
        two-step procedure:</Paragraph>
         <ProcedureList>
            <ListItem>Compute an (uncorrected) cumulative ATP value.</ListItem>
            <ListItem>Correct the cumulative ATP for future quantity deficiencies.</ListItem>
         </ProcedureList>
         <Paragraph>In the first step, an (uncorrected) cumulative ATP is computed
        for the current plan period and each subsequent period within the <Link href="/baanerp/cp/glossary/glossary#415" role="glossary">CTP horizon</Link>, as follows:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>Cumulative ATP of previous period + total planned supply - total actual demand</Paragraph>
         </Formula>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>For the current plan period, no previous cumulative ATP
          exists. Instead, the inventory on hand is used.</Paragraph>
         </Note>
         <Paragraph>In the second step, the cumulative ATP computed for the
        various plan periods is corrected for future deficiencies (periods with actual
        demand that exceeds planned supply). This is done as follows: for each plan
        period, the cumulative ATP is made equal to the lowest (uncorrected) cumulative
        ATP value that occurs in the future.</Paragraph>
         <Paragraph>This correction enhances the effectiveness of the cumulative
        ATP as an order promising tool, because it makes the cumulative ATP sensitive
        to future deficiencies.</Paragraph>
         <Paragraph>The result of the correction is that the cumulative ATP does
        not drop over time; it either rises or remains constant.</Paragraph>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <Paragraph>This example assumes that no <Link href="/baanerp/cp/glossary/glossary#000042" role="glossary">component CTP reservations</Link> need to be made.</Paragraph>
            <Paragraph>Current plan period = 3</Paragraph>
            <Paragraph>Inventory on hand = 10</Paragraph>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <THEAD noTR="1">
                  <TR no="1" isLast="true">
                     <TD rowspan="1" colspan="1">Plan period</TD>
                     <TD rowspan="1" colspan="1">3</TD>
                     <TD rowspan="1" colspan="1">4</TD>
                     <TD rowspan="1" colspan="1">5</TD>
                     <TD rowspan="1" colspan="1">6</TD>
                     <TD rowspan="1" colspan="1">7</TD>
                     <TD rowspan="1" colspan="1">8</TD>
                     <TD rowspan="1" colspan="1">9</TD>
                     <TD rowspan="1" colspan="1">10</TD>
                  </TR>
               </THEAD>
               <TBODY noTR="4">
                  <TR no="1" isLast="false">
                     <TD rowspan="1" colspan="1">(Planned supply - actual demand)</TD>
                     <TD rowspan="1" colspan="1">10</TD>
                     <TD rowspan="1" colspan="1">30</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">-60</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">40</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">ATP</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                     <TD rowspan="1" colspan="1">30</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">40</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                     <TD rowspan="1" colspan="1">0</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TD rowspan="1" colspan="1">Cumulative ATP (uncorrected)</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                     <TD rowspan="1" colspan="1">50</TD>
                     <TD rowspan="1" colspan="1">50</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">30</TD>
                     <TD rowspan="1" colspan="1">30</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                  </TR>
                  <TR no="4" isLast="true">
                     <TD rowspan="1" colspan="1">Cumulative ATP (corrected)</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">-10</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                     <TD rowspan="1" colspan="1">20</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph>In this case, the value in period 10 is copied back to
          periods 9 and 8, so part of the surplus supply in period 8 is reserved to make
          up for the deficiency in period 10.</Paragraph>
            <Paragraph>Moreover, the negative value in period 6 is copied back to
          all previous periods. This serves to indicate that the available surplus supply
          in these periods must not be promised to customers, but must instead be
          reserved to make up for (part of) the deficiency in period 6.</Paragraph>
         </ExampleSection>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000037" role="manual">Types of ATP and CTP checks</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000311" role="manual">Item ATP</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000139" role="manual">To compute the projected inventory</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000117" role="manual">Component CTP reservations</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000125" role="manual">Channel ATP</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>