Changing Event Years Question/Issue

Follow

zandralee

• June 28, 2011 02:10

I am working on running a model for the retail industry. I'm trying to determine the number of jobs a project is going to create of the next five years. I'm using industry average sales figures for the first year of stabilization and then adding a 3% increase in sales for each additional year. When I change the Event Year for 2012, this increases the jobs by 3, but when I change the Event Year for 2013 the jobs increase by 151 jobs for the 3% increase and same with 2014. Can you please let me know why there is such a drastic change for these event years and how I can get a more accurate number?

0

• 

  DougO

  • June 28, 2011 20:50

  I suspect on the 2013 event year you chose Gross Margin instead of Gross Sales when you entered the sales value. If the sales are total sales, you chose Gross Sales so that the software will only apply the margin portion of the sales to the retail sector. This is important as the production function and output per workers and all other industry relationships are based on gross margin. When you chose Gross Margin, the software has to assume that you have already margined your gross sales and are applying only margin. Hence a big (and incorrect) jump in employment.

  0

  Comment actions Permalink
• 

  zandralee

  • July 01, 2011 01:13

  No, I chose Gross Sales because I'm looking for the impact of their sales. I entered the sales with a 3% increase from the year before and it gave me a huge jump in year 2013.

  0

  Comment actions Permalink
• 

  DougO

  • July 01, 2011 02:17

  k, I don't think any of the retail deflators jump by 13% from one year to the next, so you will need to zip up the model (appliance:\implan user data\models\xxxx.impdb where xxxx is the name you gave the model) and e-mail it to info@implan.com so I can look. Be sure to note the two scenarios that show the jump.

  0

  Comment actions Permalink
• 

  zandralee

  • July 02, 2011 19:28

  Thank you Doug. I just sent the model and the data I was working from for you to review. Please let me know what I'm doing wrong. :) Thank you.

  0

  Comment actions Permalink
• 

  DougO

  • July 05, 2011 19:13

  The e-mail did not arrive. Do you have a size limit on e-mail attachments?

  0

  Comment actions Permalink

Please sign in to leave a comment.