Capability to Promise (CTP) Handling Strategy in SAP

Abstract: Nowadays, many companies attempt to adapt their production planning and strategy to make order fulfillment more flexible. In manufacturing, the capacity and capability constraints are key factors which need efficient production planning for controlling service level and minimizing inventory cost. This thesis focuses on looking for the economic and efficient strategies for Capability to Promise or CTP handling. This strategy is proposed to work for Low Volume/High Mixed product manufacturing. Moreover, SAP is used as Enterprise Resource Planning (ERP) system for steering the CTP handling strategies in order to increase automated order handling regarding cost efficiency. The results of this research are both concepts and implementations on how to set CTP handling by using SAP, regarding the demand uncertainty environment in Make to Order (MTO) fulfillment.