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Chapter 4: Q4OQ (page 580)

What term is used to identify the difference between the number of units of an item listed on the master schedule and the number of firm customer orders?

Short Answer

Expert verified

Available-to-Promise.

Step by step solution

01

Available-to-Promise

Available-to-Promiseis a business feature that gives a response to clients' order requests based on the availability of resources. It helps in generating the available quantity and delivery date for the requested product.

02

Purpose of Available-to-Promise

Available-to-Promisehelps a company to hold the minimum quantity of a given product inside their storehouses so that using the stock area is efficient. It helps the companies by reducing the possibilities of clients seeing the items as 鈥渙ut of stock鈥�.

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