APICS CPIM Preparation - Maths Problem Solving Guide

Compute the gross margin using the income statement; revenue is 80 and total expenses are 60 (admin 10, direct labor 10, direct material 20, overhead 20), yielding 20.

Calculate inventory turns by dividing annual cost of goods sold by the average inventory. In the example, beginning inventory is 50 and ending is 100, giving 75.

Learn how to calculate item fill rate, or order fill rate, by analyzing inventory and customer orders to determine the percentage of orders fully fulfilled.

calculate days of supply by dividing inventory in hand by daily usage, demonstrated with 1500 units of stock and 100 units per day to yield 15 days of supply.

Explore how a 25 percent rise in holding cost affects the EOQ, showing the optimal quantity decreases by about 10%.

Compute the economic order quantity (EOQ) for annual demand 9000, ordering cost 20, unit cost 10, and carrying cost rate 20 percent using the EOQ formula.

Calculate rated capacity from available time, efficiency, and utilization using the formula, and apply an example with 20 hours, 1.1 efficiency, and 0.8 utilization to obtain 17.6 hours.

Calculate the weekly rated capacity by deriving 40 hours of available time and applying utilization of 0.8 and efficiency of 0.9 in a work center scenario.

Calculate end period inventory from start period inventory plus production minus sales, then find average inventory by dividing the sum of start and end inventories by two.

Calculate the order point as demand during lead time plus safety stock. With 1000 units weekly demand, 3-week lead time, and 50 units safety stock, the order point is 3050.

Learn to calculate mean absolute deviation as a forecast error measure in demand forecasting for apics cpim preparation, using a two-period example of computing and averaging absolute deviations.

Calculate the critical ratio by dividing time remaining by lead time to prioritize production orders, considering manufacturing time, shipping time, and logistics, with the smallest ratio first.

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Compute the master production schedule under a level production strategy by averaging forecasted demand across four periods, incorporating beginning and end inventories, and calculating monthly inventory levels.

Correct a miscalculation in the master production schedule by showing how to adjust ending inventory using a beginning inventory of 100 to reach an ending inventory of 300.

Calculate the break-even point by equating sales revenue to fixed plus variable costs, using an example with fixed cost 10,000, variable cost 13 per unit, and price 30 per unit.

Identify the critical path by comparing lead times across activity paths and selecting the path with the maximum duration in CPM.

Compute inventory turns by dividing annual cost of goods sold by the average inventory. Using COGS of 500 units and an average inventory of 75 yields about 6.67 turns.

Determine the quick asset ratio, also known as the acid test ratio, by dividing current assets minus inventory by current liabilities. Compute the example to show a 1.2 ratio.

Calculate takt time, a lean manufacturing metric, dividing available production time by customer demand. With two shifts, 400 minutes and 800 units daily, takt time is 0.5 minutes per unit.

Explore calculating cumulative backlog and cumulative variance by comparing actual input and actual output to planned input and output, including starting backlog and prior period results.

Calculate and apply the critical ratio to prioritize production orders by time remaining and lead time, using an Excel example to decide which job to manufacture first.

Calculate the reorder point by multiplying the weekly demand of 1000 units by the lead time of 3 weeks and adding a safety stock of 50 units.

Calculate the mean absolute deviation by taking the absolute deviations between actual demand and forecast, then average across all periods.

Calculate the net requirement by subtracting on hand inventory and schedule receipts from the gross requirement, using 2200, 900, and 300 as the example.

Compute the average cost by adding fixed cost and total variable cost, then divide by units; with fixed 2000 and variable 5 per unit for 4000 units, result is 5.5.

Learn to compute the tracking signal, a KPI in demand forecasting, using the algebraic sum of actual deviations and the mean absolute deviation; positive values indicate under forecasting.

Calculate the payback period and debt ratio from an investment of 2,000 and annual cost savings, showing how quickly returns repay the investment and how liabilities relate to assets.

Practice with the on-screen digital calculator for the APICS CPIM maths exam, since no physical calculator is allowed, to build speed and accuracy using tools like the TSE Scion calculator.

Identify and avoid three core prep mistakes for the APICS CPIM maths problem solving guide: insufficient revisions, inadequate practice, and memorizing quizzes instead of applying concepts to exam questions.

Discover a weekend-friendly personal training plan for busy CPIM learners, aimed at those with limited time to review topics and tackle quizzes on the first attempt.