Spreadsheet modeling is a field of management science that finds the optimal, or most efficient, way of using limited resources to achieve the objective of an individual or a business. Spreadsheet modeling is the process of entering the inputs and decision variables into a spreadsheet and then relating them appropriately, by means of formulas, to obtain the outputs. Spreadsheet Modeling actually creates the understanding through “doing” rather than just being an example of the concept. Their primary application is business/finance as they have the ability to hold and large numerical datasets and perform complex calculations, including statistical analyses. Spreadsheets provide the most convenient way for business people to build computer models. The general approach covered is to start with a simple example and build up to a practical, real-word application. The second chapter in the textbook focuses on five examples that introduce several important modeling concepts (such as sensitivity analysis), several important Excel features (such as data tables), and even more important concepts (such as net present value)
This page contains the illustrations of the examples in a concise format.
|
|
|
|
Example
2: Estimating Sensitivity of Demand to Price at Links |
|
|
Example 3: Ordering with Quantity Discounts at
Sam’s Bookstores |
|
|
|
|
|
|
