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We are about to produce two products, Astros and Cosmos. There are seven parameters of which we are unsure:
1:2) The profit contribution of each (mainly selling price),
3:4) Production line capacities for each of the two lines,
5) Total amount of labor available per day.
6:7) Labor usage rate/unit for each product,
For each parameter we estimate a lowest possible value, PLO, a most likely median value, PMED, and a highest possible value, PHI. We are interested how the uncertainty in parameter value affects total profit. The analysis identifies for each parameter, the "bottom line" uncertainty resulting from the input uncertainty of each parameter. The Tornado diagram (it looks like a funnel cloud) gives a graphical display, most uncertainty causing parameter at the top, least uncertainty causing parameter at the bottom;