Sensitivity analysis for forecasting the cost and performance of the enterprises in the construction industry
Supp/2007 , p 135..147
Author(s):
Vasile ROBU Adrian ANICA-POPA
Keywords:
Sensitivity, cost, performance, stochastic model, forecasting
Abstract:
The focus of the current research is the forecasting of the cost in uncertain conditions and the implications on the profit of the firms in the construction materials field. Our study aims to identify critical variables which influence the cost, and the calculation of the probability to attain a value, and identification of the thrusting interval for the evolution of the cost, using stochastic models developed by Monte Carlo simulation. In the same way has been achieved a sensitivity analysis over the profit’s evolution of the organization in conditions of variables modification: demand, market share, price etc. All these elements are conditioned by a large number of economic, political and social criteria. The result of the research shows the existence of certain components which significantly influence the cost, and another category of components with an insignificant influence. In conclusion, the modeling performances, costs and stochastic simulations may offer a high potential for prediction and optimization of costs and also for increasing organization’s performances.
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