CPIM - Part 1 Formulas Exam Questions With Correct Answers

Planned Backlog - Answer Previous Planned Backlog + Planned Input - Planned Output Actual Backlog - Answer Previous Actual Backlog + Actual Input - Actual Output Throughput Formula - Answer Revenues Received - Variable Costs/ Units of Time Period New Safety Stock - Answer Old Safety Stock x √New Lead Time/Old Lead Time Demand During Lead Time - Answer Units per Period x Lead Time Takt Time - Answer Available Production Time/Rate of Customer Demand Cycle Time Formula - Answer Process Time/Operators Ending PAB After Demand Time Fence - Answer Prior Period PAB + Scheduled MPS receipt - Greater of Customer Orders or FC Surplus or Shortfall - Answer Available Hours - Load Break even in units formula - Answer Fixed Cost/ (Price per Unit-Variable Cost per Unit) Forecasted Demand Formula - Answer Seasonal Index * Deseasonlized Period Forecast moving average forecast - Answer Sum of Demand of Most Recent Periods/Number of Periods Average Ordering Cost per order formula - Answer (fixed cost/number of orders)+variable cost Assets - Answer Liabilities + Owner's Equity Income - Answer Revenue - Expenses Average Inventory Formula - Answer (Beginning Inventory + Ending Inventory) / 2 inventory turnover formula - Answer cost of goods sold/average inventory Customer Service Level - Answer Orders or Period - Stockout chances per Period/Order per Period Gross Profit - Answer COGS - revenue Demand During Lead Time (DDLT) - Answer Annual Demand/Lead Time Target Level - Answer Demand during Lead Time + Demand during Review Time + Safety Stock