Scenario comparison

What is meant by Scenario comparison?

The term "Scenario Comparison" refers to an analytical process where various possible scenarios or options are systematically compared. This process aims to evaluate the impacts of decisions or changes on different parameters or criteria and to identify the optimal solution.

Typical software functions in the area of "Scenario Comparison":

1. Scenario creation: Creating multiple scenarios based on different assumptions, conditions, or variables.
2. Parameter definition: Defining the relevant parameters or criteria to be used for comparing the scenarios.
3. Analysis tools: Tools for analyzing the impact of each scenario on predefined metrics or goals.
4. Visualization: Presenting the results of scenario comparison through graphical representations or charts.
5. Scenario selection: Ability to select the optimal scenario based on the results of the analysis.
6. Reporting: Generating reports and documentation on the results of scenario comparison for decision-makers and stakeholders.

Examples of "Scenario Comparison":

1. Investment planning: Comparing different investment scenarios in terms of return, risk, and liquidity requirements.
2. Production planning: Analyzing different production plans considering capacities, costs, and lead times.
3. Market analysis: Evaluating various market development scenarios based on growth forecasts and market entry strategies.
4. Risk management: Assessing risk scenarios to hedge against potential financial losses or market volatility.
5. Capacity planning: Comparing different capacity utilization scenarios to optimize resource use and costs.
6. Environmental analysis: Examining various environmental scenarios to assess impacts on ecosystems and natural resources.