APICS Certified in Planning and Inventory Management (CPIM 8.0) CPIM-8.0 Question # 142 Topic 15 Discussion
CPIM-8.0 Exam Topic 15 Question 142 Discussion:
Question #: 142
Topic #: 15
A company confirms a customer order based on available capacity and inventory, even though the current production plan does not cover the entire order quantity. This situation is an example of what type of order fulfillment policy?
Capable-to-promise (CTP) is a type of order fulfillment policy that confirms a customer order based on the available capacity and inventory, as well as the current production plan and schedule. CTP calculates the earliest possible delivery date for a customer order, considering the existing demand and supply situation. CTP allows a company to accept an order that exceeds the current available inventory, as long as it can produce the remaining quantity within the customer’s requested delivery time. CTP helps to improve customer service, reduce inventory costs, and increase production efficiency12. References: 1 Capable to Promise (CTP) - Definition, Calculation, and Examples 3 2 CPIM Exam References - Association for Supply Chain Management
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit