CPIM Practice Exam

What does the capable-to-promise (CTP) process involve?

1. Committing orders against available capacity only

2. Committing orders against inventory only

3. Committing orders against available capacity as well as inventory

4. Committing to orders without considering capacity or inventory

The correct answer is: Committing orders against available capacity as well as inventory

The capable-to-promise (CTP) process is an important concept in supply chain management that focuses on providing accurate delivery promises to customers based on both available inventory and production capacity. This approach allows companies to assess what they can realistically deliver to customers by considering not only the stock on hand but also the capability of their resources to meet incoming orders. When using the CTP process, a company evaluates its current and future production capabilities alongside its available inventory levels. This holistic view ensures that commitments made to customers are feasible and that the business can maintain its service levels without overpromising or straining its resources. In contrast, options that limit commitments solely to either available capacity or inventory do not fully leverage the potential of CTP. Additionally, options that disregard the consideration of either factor would likely lead to overcommitment, dissatisfaction, and operational inefficiencies. Thus, the CTP process’s integration of both available capacity and current inventory into order commitments distinguishes it as an effective strategy for managing customer expectations and optimizing supply chain performance.