Glossary
Capable to Promise (CTP)
Tags: Glossary
A technique similar to Available-to-Promise, it uses the availability of individual components to determine if an end item can be configured and assembled by a customer-given request date. It also provides the ability to adjust plans due to inaccurate delivery date promises. Capable-to-promise looks at both materials and labor/machine requirements.
What is Capable to Promise (CTP)?
Capable to Promise (CTP) is a technique used in logistics to determine if a requested end item can be configured and assembled by a customer-given request date. It takes into consideration the availability of individual components, as well as the materials and labor/machine requirements.
Similar to the concept of Available-to-Promise (ATP), which focuses solely on the availability of finished goods, CTP goes a step further by considering the availability of individual components. This allows for a more accurate assessment of whether the requested end item can be produced within the desired timeframe.
One of the key advantages of CTP is its ability to adjust plans in response to inaccurate delivery date promises. In the world of logistics, unforeseen circumstances can often lead to delays in the delivery of components or materials. By taking into account these potential delays, CTP provides a more realistic promise to customers regarding the availability of the requested end item.
CTP also considers the labor and machine requirements for assembling the end item. This ensures that not only are the necessary components available, but also the resources required for the assembly process. By taking into account both materials and labor/machine requirements, CTP provides a comprehensive assessment of the feasibility of fulfilling a customer's request.
In practice, CTP involves analyzing the availability of components, materials, and resources, and comparing them to the requested end item and its assembly requirements. This analysis allows logistics professionals to determine if the requested end item can be produced within the desired timeframe. If it is determined that the request cannot be fulfilled, adjustments can be made to the plan, such as sourcing alternative components or reallocating resources, to meet the customer's needs.
Overall, Capable to Promise (CTP) is a valuable technique in logistics that helps determine if a requested end item can be configured and assembled within a customer-given request date. By considering the availability of individual components, as well as the materials and labor/machine requirements, CTP provides a more accurate assessment of feasibility. It also allows for adjustments to plans in response to inaccurate delivery date promises, ensuring that customers receive realistic promises regarding the availability of their requested items.