Using integrated spreadsheet modeling for supply chain analysis

Spreadsheet software, notably Microsoft Excel, can be used very effectively for analyzing logistics and supply chain issues. Spreadsheets allow analysis from many different perspectives and can be modified and enhanced to reflect new situations and options. The methodology used for developing integrated spreadsheet models is similar to modeling with specialized software. The modeler develops a baseline model reflecting current operations, creates alternative scenarios and compares those scenarios to the baseline. Non‐quantifiable factors and soft costs are also considered to develop a complete analysis. Using integrated spreadsheets the modeler can analyze the impact of business decisions on any number of variables such as facility space, inventory, investment and productivity.