SMM092 Modelling Practice (CP2)
Resit Coursework Assignment

Task Background
You are asked to formulate a model project of your choice for any real or
imaginary business application (e.g. manufacturing or sales of a new product,
developing and providing some service or transportation, review of any past
historical scenario, etc.). You have complete freedom to choose the application
that you wish to implement (e.g. anything that is close to your heart, past study
topic and/or relevant to your dream work/career). However, it must be an original
task developed solely by you and it is not allowed to simply re-use and/or adopt
any of the past exam paper tasks (i.e. from internal or external sources).

It is essential that you clearly state the aims and objectives of the model and the
metrics/parameters used to assess the business application. Thus, the application
should have between 4-6 data tables (or more) with parameters relevant to the
situation being modelled. Ideally, there should be at least one set of parameters
that will need to be checked, validated and then adjusted to make them suitable
for modelling (e.g. data that might come from a less reliable source, as in the P1
test context).

Furthermore, there should be at least 3 distinct base scenarios for modelling
and/or forecasting purposes. Finally, there must be at least 1 extra model
extension scenario (e.g. a last-minute change suggested by a senior member of the
business management team, as in the P2 test context).

You will be assessed based on the complexity, validity and usefulness of the
developed spreadsheet model and the way it is presented. Similarly, the
accompanying Audit Trail and the Summary document to the given model (and its
results) will be an all-important part of the assessment (see below).

Part 1: Instructions for the Modelling Task [30 marks]
1. The first task is to formulate the business application and state the aims and objectives of
the spreadsheet model
2. Specify a number of parameters that are relevant to the model and present them in assorted
tables (e.g. in a data input sheet)
3. Carry out the data validation and the sensitivity checks on the input data and/or parameters
4. Carry out the modelling task and show clearly the specified scenarios
5. Label clearly all the stages of the modelling and provide a number of sense and/or
reasonableness tests
6. Provide suitable ways of summarising and illustrating the metrics of the stated scenarios. Make
sure to provide suitable comparative plots for quantitative assessment of the modelling
outcomes
7. Carry out the stated model extension task of the new/extra scenario. Make sure that the new
set of parameters are applied to all of the previous base scenarios and relevant outputs are
produced for a final assessment

Part 2: Instructions for the Documentation Task [70 marks]
I. Complete the modelling task described in Part 1 in Excel
II. Ensure that the approach you have used and the methodology behind your
calculations are adequately explained in the Audit Trail. The Audit Trail
should be included in the Excel spreadsheet model
III. Prepare a separate Summary Word document using discussions, bullet
points and charts, capturing the main features and results. As a
minimum you should cover the following:
• Discussion of the background to the modelled application, including
the base and the extra (extension) scenarios
• A statement to describe the main aims and objectives of the
modelling task
• Clarification of the input data/parameters and their sources
• A summary of your approach to each of the tasks set out in the Task
Description
• A suitable comparison and analysis of the base scenarios
• A suitable comparison and analysis of the extra (extension) scenario,
particularly in terms of the modified base scenarios
• A discussion of all the sense and/or reasonableness checks
• A final analysis of the metrics relevant for the assessment of the given
modelling application
• A graphical and descriptive/quantitative comparison of all the final
scenarios
• Finally, but not least, the Conclusions and Next Steps to the given
modelling application
IV. Submit the Excel spreadsheet model, with the Audit Trail, and the Summary
Word document using the assignment tool on the Moodle page.