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Introduction to Spreadsheet Modeling

Objectives:

Be able to apply best practices for spreadsheet modeling Build models for answering whatif questions Build models to understand cost and profitability Build models to understand cash flows and to determine NPV Build models to facilitate quantity ordering decisions

EXCEL:

Create line charts Oneway and twoway data tables Goal seek tool Use auditing features Use IF function to model complex logic Use SUMPRODUCT function Use VLOOKUP function Use trendline tool Use conditional formatting Use NPV function

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Example 2.1 | Ordering NCAA TShirts1

Business Goal:

Key Variables:

Input variables Uncertain variables Decision variables Key output variable Other Output variables

Model 1:

Model 2:

1 All examples are from Winston and Albright, Practical Management Science, 3e Revised, SouthWestern Cengage Learning, 2009.

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Model 3:

Model 4:

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Model 5:

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Example 2.2 | Projecting the Costs of Bookshelves at Woodworks

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Example 2.3 | Breakeven Analysis at Great Threads

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SkillBuilding Problems

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Example 2.4 | Ordering with Quantity Discounts and Demand Uncertainty

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SkillBuilding Problems

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Example 2.5 | Estimating Sensitivity of Demand to Price at the Links Company

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Example 2.6 | Calculating NPV at Acron

(note hidden rows)

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SkillBuilding Problems

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SkillExtending Problems

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