Scenario Management For Decision Making Scenario are part of suit of command

some time called what –if analysis tools. A scenario is a set of values that Microsoft Excel saves and can substitute automatically in your worksheet.You can use scenario to foercast the outcome of a worksheet model.You can create save different groups of values on a worksheet and then swtich to any of these new scenarios to view different results.

Create a scenario1. On the Tools menu, click Scenarios2. Click Add3. In the scenario name box, type a name for

the scenario.4. In the changing cells box enter the reference

for the cells that you want to change. Note To preserve the original values for the

changing cell,create a scenario that uses the original cell values before you create scenarios that change the values.

5. Under protection, select the option you want.6. Click Ok.7.In the scenario values dialogue box , type the

value you want the changing cell.8. To create the scenario , click ok9.If you want to creat a additional scenarios,click

Add again,and then repeat procedure.when you finish create scenarios, click ok, and then click close in the scenario manager dialogue box.

For ExampleIf you want to create budget but are uncertain of your

revenue, you can define different values for the revenue

and then swtich between the scenario to perform what-if analyses.

In the above example ,you could name the senario worst case,set the value in cell B1 TO 1,00,000 and set the value in cell B2 to 26,400.

A B C1 Gross Revenue 1000002 Cst Of Goods Sold 264003 Gross Profit 7360045

You could name the second scenario Best Case and change the value in B1 to 3,00,000 and B2 to 52,000.

A B C1 Gross Revenue 3000002 Cst Of Goods Sold 520003 Gross Profit 24800045

Scenario summary ReportTo compare several scenarios, you can create a

report that summarizes them on the same page. The report can list the scenarios side by side or summarize them in a pivot table report. Scenario summary report can be created in the following way.

1.On the Tools menu ,click scenarios.2.Click summary3.Click scenario summary or scenario PiovtTable.4.In the Result cell box ,enter the reference for the

cell that refer to cell s whose values are changed by the scenarios.separate multiple references with commas.

THANKS

www.jahfar114@gmail.com