MA.5:5.2 - Convert and revise the supplied scenarios
A service forecasts next period’s workload using three planning scenarios: 80, 100 or 120 accepted units. These are supplied scenarios without probability weights. The adequate resource model requires ten setup hours plus 0.25 qualified staff-hours per unit. A supplied arrangement provides 38 usable hours for 120 currency units; a feasible extra five-hour block costs 80.
| Workload scenario | Required staff-hours | Relevant supply condition |
|---|---|---|
| 80 units | 10 + 80 × 0.25 = 30 | Fits the supplied 38 hours. |
| 100 units | 10 + 100 × 0.25 = 35 | Fits the supplied 38 hours. |
| 120 units | 10 + 120 × 0.25 = 40 | Needs an adequate additional arrangement; the supplied five-hour block is one option. |
Materials require 3 per unit, and the service price is 10 per accepted unit. In the 100-unit scenario, materials are 300 and sales are 1,000. The supplied collection assumption places the 1,000 receipt on day 30, while the 300 material and 120 resource payments occur on day 1. A funding use needs the whole cash account. If the 1,000 is instead collected next month, current-period revenue can remain 1,000 under the same recognition rule while the closing receivable rises by 1,000 and this period has no corresponding receipt. MA.4 carries that receivable into the next period; it is not a second sale then.
The original workload fits the 38 hours through 112 units, since (38 − 10) / 0.25 = 112. If twenty of the 100 units instead require 0.50 hour while eighty still require 0.25, demand becomes 10 + 20 × 0.50 + 80 × 0.25 = 40 hours. Unchanged total volume therefore crosses the same supply threshold. The operating account must establish a feasible response. An expected workload of 100 alone would not establish an expected block payment: the block depends on how often the threshold is crossed, for which these unweighted scenarios supply no probability.
If new evidence changes the central scenario to 96 units, its resource demand becomes 34 hours, materials 288 and sales 960. The existing supply payment remains 120. Updating every amount by four percent would wrongly reduce that unchanged payment.
If the team instead obtains extra capacity in response to the high scenario, the revised forecast includes that decision under its actual terms. Later outcomes are compared with the conditions of each forecast.