-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 1
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
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 2
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.
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 3
Model 3:
Model 4:
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 4
Model 5:
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 5
Example 2.2 | Projecting the Costs of Bookshelves at
Woodworks
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 6
Example 2.3 | Breakeven Analysis at Great Threads
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 7
SkillBuilding Problems
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 8
Example 2.4 | Ordering with Quantity Discounts and Demand
Uncertainty
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page 9
SkillBuilding Problems
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
10
Example 2.5 | Estimating Sensitivity of Demand to Price at the
Links Company
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
11
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
12
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
13
Example 2.6 | Calculating NPV at Acron
(note hidden rows)
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
14
SkillBuilding Problems
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
15
SkillExtending Problems
-
S p r e a d s h e e t M o d e l i n g C o n c e p t s Page
16
