"Using Scenario Manager with Example Demonstrations"
The Scenario Manager is similar to Goal Seek in Microsoft Excel.
However it allows you to change multiple cells in order to see changes (not just one as is the case with Goal Seek). One of the advantages of scenarios is that they are kept for later reference and can be printed in summary form.
Scenario Manager - An Example
Look at the illustration below. We will use it to illustrate the Scenario Manager.
It shows a sheet that is calculating yearly payments on specific items this year and details expected percentage increase in these costs. You may be interested in knowing how the figures are effected if we make a range of assumptions about how each item might increase.
The cell E3 contain the formula =C3*D3%
The cell E4 contain the formula =C4*D4%
The cell E5 contain the formula =C5*D5%
The cell E6 contain the formula =C6*D6%
The cell E7 contain the formula =SUM(E3:E6)
The cell C7 contain the formula =SUM(C3:C6)
We are going to create scenarios for the following situations:
- Staff Low - 2.5%
- Staff Low, Energy High - 2.5%, 35%
- Once the above data and formulas have been created, select the changing cells, D3:D6.
- From the Tools menu, click Scenarios.
- If no previous scenarios have been created you will see the following dialog box.
- Click on the Add button and the Add Scenario dialog box is displayed.
- Enter a name for the scenario you are about to create. In this case enter the name Staff Low into the Scenario name text box and then click on the OK button. The Scenario Values dialog box will be displayed as illustrated below.
- The percentage rise in staff costs are located in cell D4 and we need to change the contents of this cell. In the dialog box enter a low value, i.e. 2.5 in the text box, next to $D$4.
- Click on the OK button and you will be returned to the main Scenario Manager dialog box, as illustrated below.
- Next we will add a second scenario where staff cost increases are low, but energy costs increases are high. Click on the Add button and enter the name for the next scenario, in this case Staff Low Energy High.
- Click on the OK button, and change the two cells as below. In the $D$4 text box, enter 2.5. In the $D$5 text box, enter 35.
- Click on the OK button.
- You will be returned to the main Scenario Manager dialog box. You can go on adding different scenarios in the way outlined above. In this case we will content ourselves with just these two scenarios.
To show a scenario
- We have set up two scenarios. To see the effect of one of these scenarios, select the scenarios from the main Scenario Manager dialog box.
- In this case we have selected Staff Low Energy High.
- Click on the Show button.
To view an alternative scenario
- In this case select the Staff Low scenario from the Scenario Manager and click on the Show button. The data will change as illustrated below.
- Click on the Close button to close the Scenario Manager dialog box.
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