CPIM Formulas
Contribution Margin - answer= (Sales - variable Costs) / sales
Breakeven - answer= Fixed costs / Contribution margin
Cash to Cash Cycle Time - answer= Inventory Days + Accounts receivable days -
Accounts payable days
Inventory turnover - answer= COGS / Average Inventory
Net Present Value (Cash) - answer= (Sum of cash flows) - (sum of present value)
Exponential Smoothing - answer= (alpha x actual demand) + ((1 - alpha) x forecasted
demand)
Tracking Signal - Forecast Deviations - answer= Sum of forecast deviations / mean
absolute deviation
If within the tracking signal, forecast is acceptable and no need for review
Forecast error - answer= Abs[ (Forecast - actual) / forecast ]
Forecast Bias - answer= Total forecast - total actual
Mean absolute deviation - answer= Sum of absolute deviations / # of deviations
Seasonal index - answer= (sum of actual demand) / average
Available to Promise - answer= On hand (or PAB) + supply - demand (actual)
*up to the next MPS receipt
Utilization - answer= Actual hours / Available hours x 100
Efficiency - answer= Standard hours / Actual hours x 100
Critical Ratio (Scheduling) - answer= time remaining / work remaining
Takt time - answer= available time / demand
Throughput $$ - answer= (revenue - variable costs) / # of years
Rated Capacity - answer= Available time x utilization x effiencey
Contribution Margin - answer= (Sales - variable Costs) / sales
Breakeven - answer= Fixed costs / Contribution margin
Cash to Cash Cycle Time - answer= Inventory Days + Accounts receivable days -
Accounts payable days
Inventory turnover - answer= COGS / Average Inventory
Net Present Value (Cash) - answer= (Sum of cash flows) - (sum of present value)
Exponential Smoothing - answer= (alpha x actual demand) + ((1 - alpha) x forecasted
demand)
Tracking Signal - Forecast Deviations - answer= Sum of forecast deviations / mean
absolute deviation
If within the tracking signal, forecast is acceptable and no need for review
Forecast error - answer= Abs[ (Forecast - actual) / forecast ]
Forecast Bias - answer= Total forecast - total actual
Mean absolute deviation - answer= Sum of absolute deviations / # of deviations
Seasonal index - answer= (sum of actual demand) / average
Available to Promise - answer= On hand (or PAB) + supply - demand (actual)
*up to the next MPS receipt
Utilization - answer= Actual hours / Available hours x 100
Efficiency - answer= Standard hours / Actual hours x 100
Critical Ratio (Scheduling) - answer= time remaining / work remaining
Takt time - answer= available time / demand
Throughput $$ - answer= (revenue - variable costs) / # of years
Rated Capacity - answer= Available time x utilization x effiencey
