#handlinguncertainty #procurement #excel
A procurement professional has to handle many uncertainties like fluctuation in raw material price, variation in demand forecasting, currency fluctuations, etc. In our last video, we have did #MonteCarlo simulation of uncertainty with #Yasai Excel add in.
Last video link - https://youtu.be/oXpgwp1YQjQ
Now in this video, we will use #Whatifanalysis in excel to simulate uncertainty in Procurement
00:00 Intro about topic
00:56 Explaining about uncertainty in Procurement
01:09 Business Problem
03:29 Spend Calculation
05:50 What if Analysis
08:43 Validating result
09:52 Conclusion
If you have any queries, please post it in comment section
can i ask what the percentages values represent in the Histogram chart
ReplyDeleteWhich video you are referring as handling uncertainty in procurement video has no histogram.
ReplyDeletei tried to do the histogram chart also to see the results ? and also i have a couple of questions ,,, 5thpercentile and 10th ... etc what it represent ? and how it is calculated ? the fx results how it is calculated ( reliability numbers), and also Random Number Seed what is represent they took a number but i didn't get from where
DeletePercentile - just assume a class has 100 students and their marks are sorted in ascending order, maximum mark is considered as 100th percentile, 5th minimum mark is considered as 5th percentile, 10th minimum mark is considered as 10th percentile and so on…
ReplyDeleteReliability- if you are conducting a test and you are getting a result, same test is conducted again, now the chance of getting the same result is considered as reliability of the test. If reliability is above 0.9 then excellent reliability. Reliability ranges from 0 to 1.
THANK YOU FOR YOUR PROMPT ANSWER , BUT I STILL HAVE A PROBLEM WITH THE FX AND histogram chart,, WHAT WE ARE CHECKING IN THIS VIDEO ? WE ARE CHECKING THE BUDGET RANGE BUT OUR RESULTS WHAT CAN MEAN ? LIKE IF THE DUDGET IS LESS THAN 0.9 ? WHAT THAT DOES MEAN
ReplyDeleteSO THE 10TH PECENTILE IS THE SECOND MARK ?
ReplyDeleteAS I KNOW .. Reliability is a degree to which a project is considered as safe for investments BUT WHAT DID WE GET WHEN WE KNEW THE RELIABILITY OF THE BUDGET ?
ReplyDeleteAND Random Number Seed what is represent ???
ReplyDelete