What is Sensitivity Analysis in Operations Management? articledome.com

Nowadays, every business wants to predict the consequences of a change before its implementation. They want to know how the new change in the policy will bring profits and other things. To do this, sensitivity analysis is the best tool. Economists and financial analysts use this analysis technique to forecast the company’s growth. It allows forecasting by using historical and true data. By investigating all the independent and dependent variables and the possible outcomes, important decisions can be made about companies. Today’s article is all about sensitivity analysis and the steps required to analyse a particular problem. Let’s begin our discussion with a very basic question.