Capable-to-promise (CTP) is the process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites.

Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered.

It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments.

The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.

Get more definitions about capable-to-promise (CTP) and other ERP related terms here.

   

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