CPIM Practice Exam

What formula is used to calculate actual backlog?

1. Previous Planned Backlog + Planned Input - Planned Output

2. Previous Actual Backlog + Actual Input - Actual Output

3. Planned Output - Actual Output

4. Actual Input - Planned Output

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

The calculation of actual backlog is derived from the previous actual backlog, adjusted for the input and output of actual quantities during the specified time period. By using the formula involving Previous Actual Backlog, Actual Input, and Actual Output, one can establish a clear understanding of how much work remains to be completed after accounting for what has been produced and what has been input into the system. The Previous Actual Backlog represents the backlog from the previous period. Actual Input indicates what has been added or is currently in production, while Actual Output accounts for what has been completed during that same period. By combining these three elements, you effectively gauge the true standing of the backlog—highlighting the accumulation or reduction of outstanding work based on real activities rather than planned activities or projections. This approach also ensures that you are measuring the backlog based on actual performance, allowing for more accurate assessments and adjustments moving forward.