Backward sensitivity analysis software is primarily used for what purpose?

Backward sensitivity analysis software is primarily utilized for goal seeking, which involves determining the necessary input values to achieve a desired output or target result. This type of analysis helps users identify how changing specific variables can impact the overall outcome, allowing for strategic adjustments in planning and decision-making.

In goal-seeking scenarios, analysts start with an end goal and work backward to establish the conditions or inputs needed to achieve that goal. For example, a business might want to find out what sales figures are necessary to achieve a specific profit margin. By applying backward sensitivity analysis, the business can manipulate various factors such as costs, pricing, or investment levels to see how they affect profitability, thereby guiding strategic adjustments.

The other options do not align with the primary function of backward sensitivity analysis. For instance, supply chain optimization primarily focuses on improving the efficiency and effectiveness within the supply chain process rather than determining inputs for a specific output. Historical what-if analysis looks at changes based on past data to predict future scenarios rather than determining necessary inputs for desired outcomes. Reverse forecasting involves predicting events based on outcomes and is less about seeking input values towards a well-defined goal.