Expected profit drops, but there is a higher maximum profit but

a lower minimum profit.

What if we go the other way?

What if it was only 175 units?

So we could play around with the order quantity and

look at what kind of impact it's going to have on our summary measures.

And what's happening with these summary measures is every time we make a change to

this worksheet, it's recalculating for us all 5,000 scenarios that we're running.

Now we could do this for different levels of demand, one at a time or

different levels of the order quantity one at a time, copy and paste the results,

or we could try to get Excel to do the heavy lifting for us, all right.

And that's what we're going to do in the one-way what-if analysis.

So we're up to step seven on the work through, and

what we're going to do is, we're going to get Excel to, one at a time, enter all of

these different order quantities, 100 through 300 in increments of 25 units.

Excel's going to take each of those values, plug it into cell B7,

run our 5,000 simulations, and

calculate out the expected profit and record that value.

So in this case, it might not look like it's saving us too much time, but

keep in mind that we're only considering a handful of scenarios, or

a handful of different order quantities.

If we wanted to go one unit at a time, or if we have a wider range of options,

having the computer do this for us is going to save us a lot of time.

All right, so let's go through the steps that we have to follow.

In cell F12, we're going to type = b11.

And so what we're doing is, that's the value that is going to be recorded.

So we're going to take this 100 as my order quantity,

the computer's going to plug it into B7.

It's going to run our simulation analysis, it's going to update what's in B11,

the expected profit, and we're going to record that value in cell F13.

Then it's going to move on to order quantity 125, plug that into B7,

update the scenarios, calculate expected profit, and we'll record that value.

So that's what the what-if analysis is doing for us.