Ravindra BagaleCourses & study guides

11. What-If Analysis

11.2 Scenario Manager

In short: Scenario Manager stores sets of input values (scenarios) and switches between them or summarises them.

Scenario Manager stores sets of input values (scenarios) and switches between them or summarises them.

Scenario Orders/day (B2) AOV (B3)
Normal 400 ₹320
Ganeshotsav 520 ₹340
Monsoon slump 330 ₹300

Steps in Excel

  1. Name the input cells first (Name Box: OrdersPerDay, AOV) and the result (Profit) – the summary report then shows names instead of addresses.
  2. Data › Forecast › What-If Analysis › Scenario Manager… › Add…
  3. Scenario name Normal › Changing cells B2:B3 › OK › enter 400 and 320 › Add to create the next scenario (Ganeshotsav 520/340, Monsoon slump 330/300) › OK.
  4. Select a scenario › Show to put its values into the model.
  5. Summary… › Result cells B13 › Scenario summary › OK. A new sheet shows all scenarios side by side.

Result (Profit): Normal −₹94,800; Ganeshotsav +₹67,920; Monsoon slump −₹1,92,600.

Ravindra Bagale's Tip

The scenario summary sheet is static – it doesn't update when the model changes, and many students send the manager an old summary. When the model changes, generate the Summary again. And name the input cells first, otherwise the summary shows things like "$B$2", which are hard to read.

Practice task

Add a fourth scenario "Diwali" (600 orders/day, AOV ₹360, delivery cost ₹32) and create a scenario summary with Profit and Revenue as result cells.