Final answer:
Available-to-Promise (ATP) is a business practice that helps coordinate production and sales efforts to determine product availability. It takes into account factors such as inventory, confirmed orders, and scheduled production. ATP helps companies make informed decisions and communicates product availability to the sales force.
Step-by-step explanation:
The concept being referred to in this question is Available-to-Promise (ATP). ATP is a business practice that involves coordinating production and sales efforts to determine how many products are available to sell. It takes into account factors such as current inventory, confirmed orders, and scheduled production to provide an accurate estimate of available products.
ATP is essential for managing production and sales operations effectively. It helps companies make informed decisions regarding expanding or reducing production, setting prices, opening or closing facilities, and hiring or laying off workers. Additionally, ATP provides valuable information to the sales force, enabling them to communicate product availability to customers.