CPIM Practice Exam

How is actual backlog calculated?

1. Previous Actual Backlog + Planned Input - Planned Output

2. Previous Actual Backlog + Actual Input - Actual Output

3. Cumulative Variance - Planned Output

4. Cumulative Variance + Actual Input

The correct answer is: Previous Actual Backlog + Actual Input - Actual Output

The calculation of actual backlog is crucial for effective production and inventory management, as it provides insights into how much work has yet to be completed. The correct method for calculating actual backlog involves taking into account the previous backlog, the actual input of items, and the actual output produced during a specific period. When using the approach that combines the previous actual backlog with actual input and actual output, it accurately reflects real-time operations. By adding the actual input—which represents all the items received or produced within the timeframe—and subtracting the actual output—which indicates all items completed—you arrive at the current actual backlog. This method takes into account the actual performance metrics, thereby offering a precise picture of the backlog. Other options either include planned elements or differ fundamentally in their approach, which does not accurately represent the current operational reality. Therefore, the method utilizing previous actual backlog combined with actual input and actual output provides a reliable and true calculation of the existing backlog, enabling better decision-making in production planning and inventory control.