QUICK & EASY exam technique for MaxiMax, MaxiMin & Minimax Regret | ACCA CBE PM | Question Shifters

🚀 Get all my PM Videos here: tinyurl.com/ACCA-PM-Help 🚀 Learn how to quickly and easily solve MaxiMax, MaxiMin, and MiniMax regret question in the CBE spreadsheet. I'll show you all the exam technique you need and share lots of spreadsheet tips to help you get a pass on your upcoming ACCA PM exam. If you are stuck on Risk and Uncertainty, this video is for you! Good luck on your upcoming exam.
Here's question Shifters: drive.google.com/file/d/1cbHU...
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Steve Willis ACCA
www.stevewillistraining.com
How to pass ACCA Exams
For more on this on ACCA PM Make-or-Buy, check out Open Tuition:
MaxiMax: • Risk and Uncertainty -...
MaxiMin: • Risk and Uncertainty -...
MiniMax regret: • Risk and Uncertainty -...
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Table of Contents:
00:00 - Introduction
01:23 - Getting started with a template
02:56 - Setting up the P/L
05:28 - Using the helpful Min function
07:21 - Dealing with conditional costs
10:07 - How to find MaxiMax
11:45 - How to make payout table

[@Kamalmarzooq2003]

That's Helpful!

[@SteveWillisACCA]

Glad it was helpful!

[@abdulbarik1419]

Really helpful

[@SteveWillisACCA]

Glad you think so!

[@manzanongwenya9091]

Please may you help me with a video on Operational and Planning variances, i just need this before the exam on Wednesday. Your videos are so helpful, thank you

[@SteveWillisACCA]

Just uploaded :)

[@abanstephen6194]

@@SteveWillisACCA most of us will be highly indebted to you.

[@sharath_bhs]

for VC. we are using min formula but in previous Q we went with prod units. should we use min formula in that Q too?

[@SteveWillisACCA]

Great question! It depends on the context of the scenario--for the cement company, they commit to the production schedule before they sell--variable cost is linked to units produced, not sold. For the van, the variable cost is linked to how many crates they actually drive around-crate deliveries sold.

[@sharath_bhs]

@@SteveWillisACCA thanks, makes sense now :)

[@tuitionaire3090]

Please how did you get the 48, 48 and 76? Also, why did you use -100 on the other column (i.e the column for when demand is higher than capacity)?

[@SteveWillisACCA]

those first ones are 10% reduction of the variable cost--it's just adding a +10% to the negative variable costs 480, 480, 760. the -100 is the 'lost customer goodwill' in the question: we didn't service all the customers so some will choose a different company. Make sense? Good luck Wednesday!

[@susannabbanja700]

More clarity on the variable cost value, i thought it will be calculated on the van capacity and also for capacity being greater than demand, i will be 90% on the variable cost since in the question states that if the capacity of the van is greater than the demand for crates in a period then the variable cost will be lower by 10%. thank you

[@SteveWillisACCA]

Hi there. The van has a max capacity. So if demand is 120 KG, but my van only holds 100KG, then my variable cost will be for the 100 my van can hold, not for the total demand. If the van is partially empty because I sell all my units on the delivery route, then the VC drops 10%...that's the idea in this question.

[@vivica75]

Why do we choose the maximin and maximax based on demand? Why not based on Van capacity?

[@SteveWillisACCA]

Maximax is the best option in the worst-case scenario, which is low demand. The van capacity is our decision. So we go through the 2 options: big van/small van and then check the profits in the different demand states, the uncertainty.

[@Ananthu-rb5ig]

Hi Sir.Can you please tell me the why Variable cost in shifters haulage&cement co calculated in a different way?

[@SteveWillisACCA]

The variable cost is based on what is produced, not sold. So if we produce 100 but sell 50, 60, or 70, the variable cost is based on 100.

[@Ananthu-rb5ig]

@@SteveWillisACCA THANKYOU

[@SteveWillisACCA]

@@Ananthu-rb5ig NP

[@Ananthu-rb5ig]

Hi Steve.Can you please give me an idea about the question "TICKET AGENT"(QT NO:296 OF KAPLAN)

[@SteveWillisACCA]

I will have to check that this week.

[@Ananthu-rb5ig]

@@SteveWillisACCA OK