Monte Carlo simulation

The Estimated Project Cost Distributions and the Final Project Cost

The Estimated Project Cost Distributions and the Final Project Cost

This entry is part 2 of 2 in the series The Norwegian Governmental Project Risk Assessment Scheme

The growing use of Cost Risk Assessment models in public projects has raised some public concerns about its costs and the models ability to reduce cost overruns and correctly predict the projects final cost. We have in this article shown that the models are neither reliable nor valid, by calculating the probabilities of the projects final costs.

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Project Management under Uncertainty

Project Management under Uncertainty

The objectives of the project scheduling are to determine the earliest start and finish of each task in the project.

The aim is to be able to complete the project as early as possible and to calculate the likelihood that the project will be completed within a certain time frame.

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The risk of planes crashing due to volcanic ash

The risk of planes crashing due to volcanic ash

This entry is part 4 of 4 in the series Airports

When the Icelandic volcano Eyafjallaj√łkul had a large eruption in 2010 it lead to closed airspace all over Europe, with corresponding big losses for airlines.

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We’ve Got Mail !

We’ve Got Mail !

This entry is part 1 of 2 in the series Self-applause

Wow!
We must be doing something right.

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Working Capital Strategy Revisited

Working Capital Strategy Revisited

This entry is part 3 of 3 in the series Working Capital

As levers of financial performance, none is more important than working capital. The viability of every business activity rests on daily changes in receivables, inventory, and payables …

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Inventory management – Stochastic supply

Inventory management – Stochastic supply

This entry is part 4 of 4 in the series Predictive Analytics

The introduction of uncertain supply has shown that profit can still be maximized however the profit will be reduced by increased costs both in lost sales and in excess inventory. But most important, profit variability will increase raising issues of possible other strategies.

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