Management Science : The Art of Modeling with Spreadsheets, Excel 2007 Update

by Stephen G. Powell (Dartmouth College); Kenneth R. Baker (Dartmouth College)

• ISBN13: 9780470393765
• ISBN10: 0470393769
• Edition: 2nd
• Format: Hardcover
• Copyright: 2008-08-01
• Publisher: Wiley

Summary

The update to the second edition of Management Science: The Art of Modeling with Spreadsheets by Steve Powell and Ken Baker is revised to be compatible with Microsoft Excel 2007. Like the original second edition, the text expands upon the essential skills needed to develop real expertise in business modeling. In principle, two students could work side by side in a course, one using the Second Edition and relying on Excel 2003, the other using the Update Edition and relying on Excel 2007. They will be able to learn the same skills, as both versions of the book are self-contained.

Author Biography

Steve Powell is Professor at the Tuck School of Business at Dartmouth College. His primary research interest lies in modeling production and service processes, but he has also been active in research energy economics, marketing, and operations. At Tuck, he has developed a variety of courses in management science, including the core Decision Science course and electives in the Art of Modeling, Business Process Redesign, and Applications of Simulation. He originated the Teacher’s Forum column in Interfaces, and has written a number of articles on teaching modeling to practitioners. He organized the Workshop on Teaching Management Science with Spreadsheet in the summer of 1998, and is the Academic Director of a new series of INFORMS workshops on teaching management science. In 2001, he was awarded the INFORMS Prize for the Teaching of Operations Research/Management Science Practice.

Table of Contents

Introduction

Models and Modeling

Why Study Modeling?

Models in Business

Models in Business Education

Benefits of Business Models

The Role of Spreadsheets

Risks of Spreadsheet Use

Challenges for Spreadsheet Users

Background Knowledge for Spreadsheet Modeling

The Real World and the Model World

Lessons from Expert and Novice Modelers

Expert Modelers

Novice Modelers

Organization of the Book

Summary

Modeling In A Problem-Solving Framework

Introduction

The Problem-Solving Process

Some Key Terms

The Six-Stage Problem-Solving Process

Mental Models and Formal Models

Influence Charts

A First Example

An Income Statement as an Influence

Principles for Building Influence

Two Additional Examples

Craft Skills for Modeling

Simplify the Problem

Break the Problem into Modules

Build a Prototype and Refine It

Sketch Graphs of Key Relationships

Identify Parameters and Perform Sensitivity Analysis

Separate the Creation of Ideas from Their Evaluation

Work Backward from the Desired Answer

Focus on Model Structure, not on Data Collection

Basic Excel Skills

Introduction

Excel Prerequisites

The Excel Window

Configuring Excel

Manipulating Windows and Sheets

Navigation

Selecting Cells

Entering Text and Data

Editing Cells

Formatting

Basic Formulas

Basic Functions

Charting

Printing

Help Options

Summary

Advanced Excel Skills

Introduction

Keyboard Shortcuts

Controls

Cell Comments

Naming Cells and Ranges

Advanced Formulas and Functions

R1C1 Reference Style

Mixed Addresses

Nesting Calculations

Parameterization

Advanced Functions

Recording Macros And Using VBA

Recording a Macro

Editing a Macro

Creating a User-Defined Function

Summary

Spreadsheet Engineering

Introduction

Designing a Spreadsheet

Sketch the Spreadsheet

Organize the Spreadsheet into Modules

Start Small

Isolate Input Parameters

Design for Use

Keep It Simple

Design for Communication

Document Important Data and Formulas.Designing a Workbook

Use Separate Worksheets to Group Similar Kinds of Information

Design Workbooks for Ease of Navigation and Use

Design a Workbook as a Decision-Support System

Building a Workbook

Follow a Plan

Build One Worksheet or Module at a Time

Predict the Outcome of Each Formula

Copy and Paste Formulas Carefully

Use Relative and Absolute Addressing to Simplify Copying

Use the Function W

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