CPIM Part 1 Formulas
Moving average forecast - answer demand of past periods / # of periods
Exponential smoothing - answer(α) (latest demand) + (1 - α) (old forecast)
Seasonal method of forecasting - answer1. Step1: Calculate a seasonal index of
demand for each period to establish seasonality. Seasonal index=Period Average
Demand/Average demand for all periods. Find average demand for all four quarters
(annual demand/4)
Step 2: Develop a depersonalized demand forecast by developing total forecast for year
and divide by number of periods or quarters.
Step 3: Develop a seasonal forecast for each period of the year being forecast (by
multiplying the depersonalized demand by quarter's seasonal index).
1. Deviation=Actual Demand-Forecast
2. MAD= |Actual - Forecast|/# of Periods
3. Tracking Signal=Algebraic Sum of Forecast Deviations/MAD
For level make to stock production plan, calculate total production needed: - answer1.
Total production needed =total forecast demand + ending inventory - opening inventory.
For MPS, calculate projected available balnce: - answerEnding PAB = beginning PAB +
scheduled MPS receipt - forecast
For master scheduling, calculate ATP: - answer1. First week: ATP=Current OH +
production run (if there is one) - cumulative CO up to next production run. Subsequent
weeks (only for weeks when a production run is scheduled). ATP =production run-cum.
CO up to next run.
For MRP, calculate Net Requirements - answerNet requirements = gross requirements -
available inventory.
For Level Make to Order production plan, calculate total production needed: -
answerTotal production needed=total forecast demand+opening backlog-ending
backlog.
For MRP, calculate projected available: - answer1. Projected available=prior projected
available+scheduled receipts+planned order receipts-gross requirements. Do entire
explosion.
Moving average forecast - answer demand of past periods / # of periods
Exponential smoothing - answer(α) (latest demand) + (1 - α) (old forecast)
Seasonal method of forecasting - answer1. Step1: Calculate a seasonal index of
demand for each period to establish seasonality. Seasonal index=Period Average
Demand/Average demand for all periods. Find average demand for all four quarters
(annual demand/4)
Step 2: Develop a depersonalized demand forecast by developing total forecast for year
and divide by number of periods or quarters.
Step 3: Develop a seasonal forecast for each period of the year being forecast (by
multiplying the depersonalized demand by quarter's seasonal index).
1. Deviation=Actual Demand-Forecast
2. MAD= |Actual - Forecast|/# of Periods
3. Tracking Signal=Algebraic Sum of Forecast Deviations/MAD
For level make to stock production plan, calculate total production needed: - answer1.
Total production needed =total forecast demand + ending inventory - opening inventory.
For MPS, calculate projected available balnce: - answerEnding PAB = beginning PAB +
scheduled MPS receipt - forecast
For master scheduling, calculate ATP: - answer1. First week: ATP=Current OH +
production run (if there is one) - cumulative CO up to next production run. Subsequent
weeks (only for weeks when a production run is scheduled). ATP =production run-cum.
CO up to next run.
For MRP, calculate Net Requirements - answerNet requirements = gross requirements -
available inventory.
For Level Make to Order production plan, calculate total production needed: -
answerTotal production needed=total forecast demand+opening backlog-ending
backlog.
For MRP, calculate projected available: - answer1. Projected available=prior projected
available+scheduled receipts+planned order receipts-gross requirements. Do entire
explosion.
