Certified Supply Chain Professional (CSCP) Practice Exam

Which method is used for computing available-to-promise (ATP) when products have expiration dates?

1. Cumulative ATP without look ahead

2. Discrete ATP (noncumulative)

3. Cumulative ATP with look ahead

4. Static ATP methods

The correct answer is: Discrete ATP (noncumulative)

The correct method for computing available-to-promise (ATP) when products have expiration dates is discrete ATP (noncumulative). This approach is particularly useful in industries where inventory items have a limited shelf life, such as food and pharmaceuticals. Discrete ATP focuses on specific inventory batches rather than aggregating available units over a broader time frame, which could lead to inaccuracies in managing items that expire. This method assesses availability on a case-by-case basis, which is critical when dealing with perishable goods. By using discrete ATP, companies can ensure that they allocate their inventory to customer orders in a manner that respects the expiration timelines of their products, minimizing waste and optimizing customer service. In contrast, the other methods like cumulative ATP and static ATP do not effectively address the nuances of expiration dates. Cumulative approaches can obscure the availability of specific items, while static methods do not take into account fluctuations in inventory levels or expiration timelines, making them less suitable for managing perishable products.