APICS CPIM Final Formulas With Complete Solution

Capacity utilization - Answer =Actual output/total output capacity order Point - Answer Deman * (TL)+ SS planned order release - Answer planned receipt/(1- scrap factor) payback period - Answer cost of investment/ annual cash savings Return on Investment (ROI) - Answer profits/(cost of investment) Quick Ratio - Answer current assets-inventory/ liabilities available time - Answer =equipment * (time in time bucket) critical ratio - Answer time remaining untill due date /work remaining -A dispatching rule that calculates a priority index number by diviging CR= (time remaining/work remaining) -Ratio 1 is behind sch Ratro 1 is a head of scheduel Ratio = 1 on sch inventory turn - Answer COGS/Average invneotry Furture Saftey Stock - Answer Current SS * SQRT (Future DCs/Old DCs) Process capability index (CPK) - Answer Lesser of : USL-Mean/3(SD) or Mean- LSL/3(SD) Process Capability Index (Cp) - Answer (upper specification limit - lower specification limit) / 6 standard deviation Logistics cost - Answer = transportation + warehousing + handeling landed cost = - Answer =production cost + logistics cost Time per Work Order - Answer setup time + runtime efficiency - Answer =standard hours/actural hours capacity - Answer =available time * utilization * efficency utilization - Answer actual output/design capacity