APICS CPIM Final Formulas With Complete Solution

order Point Deman * (TL)+ SS utilization - Answer actual output/design capacity slack time - Answer =(current date - due date) - amount of time remaining on operation Saftey stock - Answer customer serice level * sqrt(( theta demand * Lead Time) + ((theata Lead Time * average demand)^2)) carrying cost - Answer =carry cost rate (avg inv) Time Availability - Answer = (Equipment) * (hours in time bucket) Contribution Margin Ratio - Answer Contribution Margin / Sales Payback Period - Answer investment/ annual cash savings Contribution Margin - Answer = Sales - Variable Costs Break even point in units - Answer fixed cost / contribution margin per unit Break even poiint (Dollars) - Answer fixed cost / CM Ratio Quality or utilization - Answer = perfects produced / total amount produced over all equipment effectivness - Answer = (available time)*(Efficency)*(utilization) Efficency - Answer standard hours/ actual hours Average inventory - Answer = (Current inventory + previous inventory)/ 2 performance efficency - Answer Standard hours/ actural hours back log - Answer = beginning back log + demand - supply customer service level - Answer = (orders per period - stock out chances per period)/(orders per period)