Which concept describes the process of committing orders against capacity and inventory to reduce expediting and inaccurate delivery promises?

• A. Capacity management
• B. Cash flow
• C. Carrying cost
• D. Capable-2-promise

Answer: (D)

Capable-to-promise is about committing orders based on what the plant can actually deliver, considering both inventory on hand and the production capacity available. It looks at current stock plus the capacity available along the production flow to assign a realistic delivery date, so promises align with what the schedule can meet. This reduces the need for last‑minute expediting and avoids making dates you can’t honor, leading to more reliable delivery commitments. The other concepts don’t fit because capacity management is a broader planning activity, not a specific order commitment based on current load; cash flow and carrying cost focus on financial and inventory holding aspects, not on scheduling and promise dates. Capable-to-promise specifically ties the promise to both inventory and capacity to improve delivery accuracy.