If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:
A) Master Production Schedule
B) Most recent positive ATP
C) Beginning inventory
D) Bill of materials

Question

Quizplus · Accepted Answer

If the ATP for any period is negative, it means that there is not enough inventory to meet the customer demand. In this case, the deficit must be subtracted from the most recent positive ATP in order to determine the actual available inventory. This is because the most recent positive ATP represents the most accurate estimate of inventory availability. Subtracting the deficit from the master production schedule or bill of materials would not provide an accurate inventory calculation, as these are planning tools rather than inventory records. Beginning inventory may also be inaccurate or outdated, as it does not reflect any recent production or sales activity.

If an Available-To-Promise (ATP) for Any Period Is Negative, the Deficit