127k views
0 votes
The correct sequence of elements leading to an "available to promise" (ATP) is?

1) item availability, customer creditworthiness, price
2) customer creditworthiness, price, item availability
3) price, customer creditworthiness, item availability
4) item availability, price, customer creditworthiness

User Chemary
by
7.1k points

1 Answer

1 vote

Final answer:

In determining "available to promise" (ATP), a business should confirm the item's availability, assess customer creditworthiness, and settle on the price. these steps enable the company to confidently commit to an order fulfillment. Hence the correct sequence is item availability price customer creditworthiness.

Step-by-step explanation:

The correct sequence of elements leading to an "available to promise" (ATP) in a business context typically involves confirming item availability, assessing the customer creditworthiness, and determining the price of the product. After confirming these elements, a seller can commit to fulfilling an order. Item availability is essential to ensure that there is enough stock to promise to a customer. Customer creditworthiness ensures that the company is likely to be paid for the goods. Finally, the price must be agreed upon to complete the sales transaction.in a logistical sequence, understanding 'item availability' comes first, as the company needs to guarantee that there is enough stock to fulfill orders. 'Customer creditworthiness' is critical especially if the terms of the sale involve credit, as it minimizes the risk of non-payment. Lastly, 'price' is involved in the transaction completion, where terms and confirmations are finalized.

Therefore, the sequence that best represents this process is: 4) item availability, price, customer creditworthiness.

User Jairon
by
6.0k points