Scm 16: Supply Chain Modeling & Optimization Session Introduction to Modeling & ms excel I january 23, 2023

• Intro to Modeling
• Modeling Basics: Example 1
• Modeling Basics: Example 2
• Summary

Basic Spreadsheet Modeling: Concepts & Best Practices (1 of 2)

• Most mathematical models, including spreadsheet models, involve inputs, decision variables, and outputs.
• The inputs have given fixed values, at least for the purposes of the model.
• The decision variables are those a decision maker controls.
• The outputs are the ultimate values of interest; they are determined by the inputs and the decision variables.

• 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.

Concepts & Best Practices (2 of 2)

• Analyze the outputs to yield insights.
• Sensitivity analysis
• Optimization
• Charts

• Model readability is important.
• Clear, logical layout
• Multiple worksheets (or tabs) to separate different parts
• Heading, coloring, font size, italics
• Use of cell names and/or comments

• Much of the power of spreadsheets derives from their flexibility.
• Write cell addresses, rather than hard numbers, where possible

• Intro to Modeling
• Modeling Basics: Example 1
• Modeling Basics: Example 2
• Summary