Spreadsheet Models for Managers

Getting Access to Spreadsheet Models for Managers

If Spreadsheet Models for Managersyou use Excel to model businesses, business processes, or business transactions, this course will change your life. You’ll learn how to create tools for yourself that will amaze even you. Unrestricted use of this material is available in two ways.

As a stand-alone Web site
It resides on your computer, and you can use it anywhere. No need for Internet access.
At this Web site
If you have access to the Internet whenever you want to view this material, you can purchase on-line access. Unlimited usage. I’m constantly making improvements and you’ll get them as soon as they’re available.

To Order On Line

Order "Spreadsheet Models for Managers, on-line edition, one month" by credit card, for USD 69.95 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, on-line edition, three months" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.
Order "Spreadsheet Models for Managers, downloadable hyperbook edition" by credit card, for USD 199.00 each, using our secure server, and receive download instructions by return email.

To Order by Mail

Make your check payable to Chaco Canyon Consulting, for the amount indicated:
  • For the download: USD 199.00
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  • For access online for one month: USD 69.95
And send it to:
Chaco Canyon Consulting
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Cambridge, MA 02138

To use the course software you’ll need some other applications, which you very probably already have. By placing your order, you’re confirming that you have the software you need, as described on this site.

Spreadsheet Models for Managers

Preview of Next Time:
Inventory Modeling
Session Links
  • Inventory modeling is one example of a capacity problem
  • Inventory is especially important in businesses that deal in materials, and most especially when interest rates are high
  • Cost factors associated with inventory include interest expense, ordering cost, space, shrinkage, and other holding costs
  • When demand is constant, we can define an Economic Order Quantity (EOQ)

Next time, we’ll look at the operational side, and address the question “How often should I order supplies?” Answering this question involves understanding the costs associated with inventory — holding it, acquiring it, and drawing it down.

Last Modified: Wednesday, 27-Apr-2016 04:15:26 EDT

The LCA Is an Example of a Spreadsheet Idiom

The Lease Characteristic Array is an example of a construct that makes more effective the modeling of a wide class of problems involving leasing. Certainly, it can be generalized, and certainly there are other possible constructs that could also be helpful with these kinds of problems. But let’s not stop there.

Certainly there are other problems that are susceptible to similar approaches. That is, we can create spreadsheet “idioms” that have applicability to problems more general than the problem immediately at hand. In a field as rich and complex as spreadsheet modeling, it is extremely unlikely that you will find all such techniques described in books, course, or Web sites. From time to time, you’ll have to invent them yourself.

You’ll do best if you can figure out how to produce useful idioms that can help solve wide classes of problems.

A Tip for Verifying Complex Models

Many models are linear with respect to some of their input parameters and input streams. This means, among other things, that when we multiply the input by a constant K, the output also increases by a factor of K. If you know that your model is supposed to be linear with respect to some input parameter or input stream, you can use this fact to check your model: doubling the input should double the output.

You can build these checks into your model from the beginning by defining parameter multiplication factors. For instance, suppose you know that the model’s personal computer expenses should be proportional to the number of employees. By introducing a scaling parameter (normally 1.0), which multiplies the initial number of employees, and multiplies the hiring streams, before they’re used in the rest of the model, you can easily investigate the effects of changing the number of employees, to verify proportionality.

It's Easier to Prevent Errors Than It Is to Correct Them