Scenario Analysis: Single Variable

Our employer wants to analyze the impact of Hours of Operations, on monthly profit for the proposed generator service provi
team has determined the minimum hour of operation is 120 and the maximum hour of operation is 160. Cost of Die
Diesel consumption per hour is 450 Liter. The operations team has also provided estimates for the number
of Bill Collection per month and revenue per bill collection, 2250 and $24, respectively. We've summarized this information in
provided by the operations team we've determined an estimated monthly profit in cell B24. We'd like to analyze how profit is

We're going to use a one-way Data Table to analyze the impact of Hours of Operations on profit.

Parameters - Generator Business

Connections 2,250
Hours of Operation 150
Diesel Consumption per hour in Liter 450
Revenue per Connection $24
Cost per Liter $0.75
Fixed Cost $5,000
Total Revenue $54,000
Total Costs $55,625
Profit per Month -$1,625
d generator service provider. The operations
on is 160. Cost of Diesel in $0.75 per Liter and
or the number
rized this information in cells A15:B24. Using the information
to analyze how profit is impacted by Hours of Operations.
Sensitivity Analysis: Taking Multiple Variables Separately

Our employer wants to analyze the impact of Hours of Operations, on monthly profit for the proposed generator service provi
The operations team has determined the hours of operation to be 140. Cost of Diesel in $0.75 per Liter and
Diesel consumption per hour is 450 Liter. Connection repairing cost is $3000. The operations team has also provide
of Bill Collection per month and revenue per bill collection, 2250 and $24, respectively. We've summarized this information in
provided by the operations team we've determined an estimated monthly profit in cell B24.
But there is a concern that Number of Connections, Diesel Consumption and Connection Repairing Cost can vary by 15%
Do a sensitivity analysis for change in this three variables separately on Profit per month

Parameters - Generator Business

Connections 2,250
Hours of Operation 140
Diesel Consumption per hour in Liter 450
Revenue per Connection $24
Cost per Liter $0.75
Connection Repairing Cost $3,000
Fixed Cost $2,000
Total Revenue $54,000
Total Costs $52,250
Profit per Month $1,750
d generator service provider.
5 per Liter and
team has also provided estimates for the number
rized this information in cells A12:B21. Using the information

st can vary by 15%

Scenario Analysis: Two Variables

DEF online store wants to analyze the impact of Online store related costs (such as Delivery Cost and Website Maintenance) a
team has determined the minimum cost per hour is $30 and the maximum cost per hour is $50. The operations team
of Maximum and Minimum purchases per month 2000 and 2500. Revenue per purchase $15, respectively. We've summarized
provided by the operations team we've determined an estimated monthly profit in cell C19. Our Task is to analyze how profit

We're going to use a Two-way Data Table to analyze the impact of cost per hour and number of purchases on profit.

Parameters - DEF Online Store

Purchases 2,000
Hours of Operations 720
Revenue per Purchase $15
Cost per Hour $30
Total Revenue $30,000
Total Costs $21,600
Profit per Month $8,400
nd Website Maintenance) and number of purchases on monthly profit. The operations
$50. The operations team has also provided estimates for the number
ectively. We've summarized this information in cells A12:B19. Using the information
ask is to analyze how profit is impacted by cost per hour and number of purchases.

rchases on profit.
Scenario Analysis: Decision Making from Simulation

DEF online store wants to analyze the impact of Online store related costs (such as Delivery Cost and Website Maintenance) a
team has determined the minimum cost per hour is $30 and the maximum cost per hour is $50. The operations team
of purchases per month 20% probability for 2000, 30% probability for 2200, 10% probability for 2500, 20% probability for 2400
Using the information provided by the operations team, do the following:

Run 200 simulations for Purchase and Cost per hour

Determine the Probability of Profit over a year
Decide whether to start this business or not, if threshold profit probability is 80%

Parameters - DEF Online Store

Hours of Operations 720
Annual Hours of Operation 8,640
Revenue per Purchase $15
Min Cost per Hour $30
Max Cost per Hour $50
d Website Maintenance) and number of purchases on monthly profit. The operations
50. The operations team has also provided estimates for the number
0, 20% probability for 2400 and 20% probability for 2300. Revenue per purchase $15.
Optimization with Solver

A hypothetical company "Ferox" sells four type of hearing electronics products: Earpod (EP), Wireless Earpod (WEP), Headset
The Operations team has given following information about their market price, cost and other informations. Total Capacity of
Your task is to find out how much product should be sold to maximize the profit. No product can be sold less than 25 unit or m
If Any product is sold more than $ 500 then, there will be 20% tax on total profit for that product.

Product Market Price Variable Cost Fixed Cost

EP $ 10.0 $ 4.0 $ 50.0
WEP $ 17.0 $ 12.0 $ 85.0
HP $ 25.0 $ 19.0 $ 150.0
WHP $ 39.0 $ 28.0 $ 200.0
Earpod (WEP), Headset (HP), Wireless Headset (WHP)
ations. Total Capacity of production is 200 units.
ld less than 25 unit or more than 75 units.