The available to promise (ATP) inventory represents the difference between the orders that are already booked by the customers and the products that the company is going to produce.
The process of planning by the manufacturers about the type of products to be produced and their quantity during a particular period. It helps in planning the process of production by providing the production team with a clear goal and understanding.
It also helps to plan the purchases needed to be made that are required by the production team for manufacturing. Thus it also determines the investment required for the mentioned purchases.
Hence the master production schedule is the very link by which the sales department and manufacturing department communicate with each other. The Master production schedule is, therefore, a kind of contract between the sales and manufacturing departments where the sales department has made promises which are to be kept by the production department.
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