CPIM Part 1 Formulas

CPIM Part 1 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