When Jacob Jawad had completed Spiro Tech's pro forma cash flow, he noticed a cash deficit for three months of the year, which, he perceived, was due to poor inventory planning. He adjusted the date of selected purchase orders on his electronic spreadsheet until he was satisfied that the deficits were eliminated or minimized in the target months. And Jawad was performing

Question

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Jawad was performing Sensitivity Analysis, which involves changing one or more variables to see how those changes affect the outcome. In this case, he adjusted the dates of purchase orders to see how it would affect the cash flow, which is a classic example of sensitivity analysis.

When Jacob Jawad Had Completed Spiro Tech's Pro Forma Cash