Management Science Essay Example | Topics and Well Written Essays - 1500 words

Management Science - Essay Example It could be used to test various possibilities without any major risks regarding the inventory levels, leftovers, lost or theft, etc. As mentioned earlier, the main advantage of models is that they allow tremendous flexibility in terms of making changes, experimentation, etc. Various models exist such as budgeting models, debt analysis models, etc. Although there is a lot of comfort that comes with the usage of business models; however, most people who form those models do not follow a particular framework of model development. The basic problem arises when people start working at the top left hand corner and start moving and copying cells and introducing variables in a haphazard manner. It is also a wrong approach to develop formulae when you need them. We might end up developing a model, the quality of the model development process and the developed model suffers (Spreadsheet model for managers, 2010). All business related curriculums teach their students about spreadsheet model and how to model problems faced by businesses, however, very few focus on teaching a particular framework that can be utilized for building a proper high quality model. There are several problems that one may encounter while modeling business models in spreadsheets. The few very common problems are: One major problem that one might encounter while modeling on spreadsheets is that they do not have a proper structure for designing or laying out the model. We can quickly jump on model formulation, however, we would realize while developing the model that we need to bring in a proper structure or some sort of rules as the model stretches to more than one sheet. Models spread on more than one sheet could get pretty complex, and difficult to extend or edit if in case the requirements or the basis change. Another problem with spreadsheet modeling is that there could be several mistakes while copying formulae. The formulae