CPIM - PART 1 NEW EXAM STUDY GUIDE SOLUTION FORMULAS

CPIM - PART 1 NEW EXAM STUDY GUIDE SOLUTION FORMULAS

Planned Backlog - Previous Planned Backlog + Planned Input - Planned Output

Actual Backlog - Previous Actual Backlog + Actual Input - Actual Output

Throughput Formula - Revenues Received - Variable Costs/ Units of Time Period

New Safety Stock - Old Safety Stock x √New Lead Time/Old Lead Time

Demand During Lead Time - Units per Period x Lead Time

Takt Time - Available Production Time/Rate of Customer Demand

Cycle Time Formula - Process Time/Operators

Ending PAB After Demand Time Fence - Prior Period PAB + Scheduled MPS receipt -
Greater of Customer Orders or FC

Surplus or Shortfall - Available Hours - Load

Break even in units formula - Fixed Cost/ (Price per Unit-Variable Cost per Unit)

Forecasted Demand Formula - Seasonal Index * Deseasonlized Period Forecast

moving average forecast - Sum of Demand of Most Recent Periods/Number of Periods

Average Ordering Cost per order formula - (fixed cost/number of orders)+variable cost

Assets - Liabilities + Owner's Equity

Income - Revenue - Expenses

Average Inventory Formula - (Beginning Inventory + Ending Inventory) / 2

inventory turnover formula - cost of goods sold/average inventory

Customer Service Level - Orders or Period - Stockout chances per Period/Order per
Period

Gross Profit - COGS - revenue

Demand During Lead Time (DDLT) - Annual Demand/Lead Time

Target Level - Demand during Lead Time + Demand during Review Time + Safety
Stock