Table Of Content

Excel Models for Business and Operations Management Second Edition Page: i About the author Page: ii Contents Page: vii Preface Page: xiii 1 A systems view of business Page: 1 Overview Page: 1 A systems view of business operations Page: 2 A manufacturing business model Page: 3 Finance and cost accounting Page: 3 The marketing function Page: 5 The production function Page: 5 Management decision-making Page: 12 Enterprise resource planning (ERP) Page: 15 References and further reading Page: 16 2 Model-building tools Page: 17 Overview Page: 17 Modelling characteristics Page: 18 Risk and uncertainty in decision-making Page: 20 Linear programming (LP) Page: 21 Using Excel’s ‘Analysis ToolPak’ Page: 26 Statistical methods Page: 27 Decision analysis Page: 34 Simulation Page: 42 Excel functions used in model-building Page: 46 Exercises Page: 49 References and further reading Page: 51 PART 1 BUSINESS MODELS Page: 53 3 Financial models Page: 55 Overview Page: 55 Financial statements Page: 56 Ratio analysis Page: 56 Net present value (NPV) Page: 59 Investment appraisal Page: 61 Portfolio management Page: 64 Capital budgeting using decision trees Page: 68 Cash flow analysis Page: 69 Investment financing: a simulation model Page: 74 Financial planning Page: 78 Commercial add-in products for Excel Page: 82 Excel functions used in model-building Page: 82 Exercises Page: 86 References and further reading Page: 88 4 Investment analysis models Page: 89 Overview Page: 89 Risk preference attitudes Page: 90 Utility theory Page: 91 Portfolio theory: the Markowitz model Page: 94 Portfolio analysis: the efficient frontier Page: 97 Single index model (SIM) Page: 101 The capital asset pricing model (CAPM) Page: 106 Bond valuation Page: 108 Duration and bond volatility Page: 113 The Black–Scholes option pricing model Page: 117 Excel functions used in model-building Page: 120 Exercises Page: 124 References and further reading Page: 126 5 Worksheet applications in cost accounting Page: 127 Overview Page: 127 Cost-volume-profit analysis Page: 128 Depreciation Page: 130 Equipment replacement Page: 132 Statistical replacement analysis Page: 136 Simulation model for replacement/repairs Page: 140 Comparison between simulation and statistical results Page: 144 Budgeting Page: 144 Job costing Page: 150 The learning curve Page: 155 Checking the accuracy of learning curves Page: 158 Excel functions used in model-building Page: 160 Exercises Page: 163 References and further reading Page: 166 6 Marketing models Page: 167 Overview Page: 167 Organising and presenting data Page: 167 Correlation analysis and linear regression Page: 170 Forecasting – time series and exponential smoothing Page: 174 Forecasting – exponential smoothing Page: 178 Salesforce models Page: 186 Goal programming Page: 190 Excel functions used in model-building Page: 200 Exercises Page: 201 References and further reading Page: 205 7 Purchase order processing: a database application Page: 206 Overview Page: 206 Creating a simple macro Page: 207 Purchase order processing Page: 209 Creating the title screen Page: 210 Products and suppliers worksheets Page: 214 Creating the purchase order form Page: 215 Creating the database and its associated macros Page: 219 Macros for transferring data into the database Page: 221 Adding macros to buttons Page: 224 Amending purchase orders Page: 225 Printing purchase orders Page: 230 Protecting the POP database application Page: 232 Excel functions used in model-building Page: 236 Exercises Page: 237 References and further reading Page: 239 PART 2 MODELS FOR OPERATIONS MANAGEMENT Page: 241 8 Statistical applications in quality control Page: 243 Overview Page: 243 Probability distributions Page: 244 Acceptance sampling Page: 249 Estimation – drawing conclusions from samples Page: 253 Hypothesis testing – checking out a claim! Page: 257 Analysis of variance (ANOVA) Page: 258 Statistical process control Page: 263 Excel functions used in model-building Page: 272 Exercises Page: 275 References and further reading Page: 278 9 Inventory control models Page: 279 Overview Page: 279 Glossary of inventory terms Page: 280 Characteristics of inventory models Page: 281 Deterministic models Page: 282 Production order quantity model Page: 284 Inventory models with constraints Page: 291 Probabilistic models Page: 293 Inventory control: a simulation approach Page: 304 Material requirements planning Page: 307 Lot-sizing methods Page: 315 Just-in-time (JIT) approach to inventory management Page: 318 Excel functions used in model-building Page: 318 Exercises Page: 319 References and further reading Page: 323 10 Models for production operations Page: 324 Overview Page: 324 Logistics models Page: 325 Other network flow applications Page: 331 Production planning and scheduling Page: 339 Queuing models Page: 353 Excel functions used in model-building Page: 362 Exercises Page: 364 References and further reading Page: 369 11 Project management Page: 370 Overview Page: 370 Project management techniques Page: 371 The project network Page: 371 Simulation model for project management Page: 392 Exercises Page: 396 References and further reading Page: 399 Appendix Excel refresher notes Page: 400 Basic Excel commands Page: 400 Drawing charts with ChartWizard Page: 405 Object linking and embedding (OLE) Page: 407 Index Page: 409

Description:

Excel Models for Business and Operations Management, Second Edition, adopts a structured approach to management decision-making by integrating the activities of a manufacturing organization. The text is entirely assignment-based and uses Microsoft’s Excel software to develop over eighty models. Everyday examples from finance, marketing and operations management form the basis of the book’s ‘hands-on’ development models. As in the previous edition, the emphasis is on the practical implementation of real-world models rather than traditional theoretical concepts. The book’s learn-by-example approach helps to develop both analytical and mathematical skills by focusing on the formulation and building of business models.

New features in the second edition include

Finance models in a new chapter on investment analysis models
Job sequencing including a VBA routine for Johnson’s Rule
Multiplicative Holt-Winter’s model
All models and reference notes updated to the latest version of Excel

Excel Models for Business and Operations Management is ideally suited to intermediate and advanced undergraduate courses, as well as MBA courses, in business studies, finance, accounting, information technology, and operations management. It should be of interest to managers and analysts who want to develop their model-building skills.