CPIM Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

The planned backlog formula is essential for understanding inventory management and production planning. The correct formulation reflects how to calculate the backlog of orders that need to be fulfilled over a specific time period.

The formula, "Previous Planned Backlog + Planned Input - Planned Output," illustrates that you start with what you had from the previous period (the backlog), add the planned input (orders or inventory expected to come in), and subtract the planned output (the production or fulfillment expected to occur). This approach helps in assessing how much backlog will carry over into the next period given the expected production and demand levels.

In contrast, other options propose different relationships between backlog, input, and output. These alternate formulas may not reflect the accurate flow of inventory and orders needed for effective capacity and backlog planning. Understanding the correct formula ensures accurate representation of net backlog, which is crucial for production scheduling and resource allocation.