238110574.xls.

ms_office
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A B C D E
When this workbook (TORNDIAG.XLS) is open, you can make a tornado diagram
in any workbook by the menu command sequence Tools>TornadoDiagram.
The TornadoDiagram procedure will ask you to specify six ranges in your workbook:
(1) A single cell containing output for sensitivity analysis in the tornado diagram.
(2) A range of parameter cells, in one column, that affect this output cell.
The values of these parameter cells should be your best estimates of these parameters.
(3) A range, the same size as (2), containing labels for these parameters.
(4) A range, the same size as (2), containing low alternative values for these parameters.
(5) A range, the same size as (2), containing high alternative values for these parameters.
(6) An empty range, with 4 columns and one more row than (2), to store data for the tornado diagram.
In this data range, the TornadoDiagram procedure will write:
a label for each parameter in column 1,
the output cell value when the parameter is at its low value (with others at best estimate) in column 2,
the output cell value when the parameter is at its high value (with others at best estimate) in column 3,
the absolute value of the difference between columns 2 and 3 in column 4.
The TornadoDiagram procedure will sort this range by column 4, and then make the tornado diagram.
EXAMPLE
(1) Output Cell (profit) Formula of cell A21. =(A23-A26)*A24*A25-A27
225
(2) Parameters (3) Labels (4) Low Parameter Values(5) High Parameter Values
175 Selling Price 140 200
12 Market Size 8 20
0.25 Our Share 0.18 0.35
40 Variable Cost 30 60
180 Fixed Costs 150 300
(6) Tornado Table
Parameters: Output A21 with low value from C23:C27 for parameter in A23:A27 Output A21 with high value from D23:D27 for parameter in A23:A27 Output Differences:
Market Size 90 495 405
Our Share 111.6 387 275.4
Selling Price 120 300 180
Fixed Costs 255 105 150
Variable Cost 255 165 90
0 100 200 300 400 500 600
Market Size
Selling Price
Variable Cost
Tornado Diagram
ankFactorLowHighVariance1Unit Price(C) 6000(D) 26000200002Volume(A) 8000(B) 24000160003Unit Cost(E) 18000(F) 140004000
lever Low High
Onversion 4 12
Price 5 11
Inflation 4 8
F/Xrate 6 8
4
5
4
6
0 5
Onversion
Price
Inflation
F/Xrate
ankFactorLowHighVariance1Unit Price(C) 6000(D) 26000200002Volume(A) 8000(B) 24000160003Unit Cost(E) 18000(F) 140004000
12
11
8
8
10 15
Low
High