02 - BUS336 In building spreadsheets for deterministic...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
BUS336
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
In building spreadsheets for deterministic models, we will look at:    ways to translate the black box representation     into a spreadsheet model.    recommendations for good spreadsheet model    design and layout    suggestions for documenting your models    useful features of Excel for modeling and     analysis
Background image of page 2
The Pies are then processed and sold to local grocery stores in order to generate a 
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Step 2:  Formulation Model Using “Black Box” diagram, specify cost parameters The next step is to develop the logic inside the black box. A good way to approach this is to create an Influence Diagram. Pie Price Unit Cost, Filling Unit Cost, Dough Unit Pie Processing Cost Fixed Cost An Influence Diagram pictures the connections between the model’s exogenous  variables and a performance measure (e.g., profit). Exogenous Variables
Background image of page 4
To create an Influence Diagram: start with a performance measure variable. Further decompose each of the intermediate variables into more related  intermediate variables.    Decompose this variable into two or more intermediate variables that combine  mathematically to define the value of the performance measure. Continue this process until an exogenous variable is defined (i.e., until you  define an input decision variable or a parameter).  
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
performance  measure  variable Profit Start here: Decompose this variable into the intermediate variables Revenue and Total Cost
Background image of page 6
Profit Revenue Total Cost Now, further decompose each of these intermediate variables into more related  intermediate variables . ..  
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Profit Revenue Total Cost Pies Demanded Pie Price Unit Pie Processing Cost Fixed Cost Processing Cost Ingredient Cost Unit Cost Filling Unit Cost Dough Required Ingredient Quantities
Background image of page 8
Step 3:  Model Construction Based on the previous Influence Diagram, create the equations relating the  variables to be specified in the spreadsheet.
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Profit Revenue Total Cost Profit = Revenue – Total Cost
Background image of page 10
Profit Revenue Pie Price Pies Demanded Revenue = Pie Price * Pies Demanded
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 37

02 - BUS336 In building spreadsheets for deterministic...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online