Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 17

In Problem, assume that production capacity at Burlingham Mills for the Troy Clothing Company contract is normally distributed, with a mean of 320 yards per month and a standard deviation of 120 yards, and that Troy Clothing's demand is uniformly distributed between 0 and 500 yards. Develop a simulation model by using Crystal Ball and determine the average monthly shortage or surplus for denim cloth (for 1,000 trials). Also determine the probability that Burlingham will always have sufficient production capacity.
Problem
Burlingham Mills produces denim cloth that it sells to jeans manufacturers. It is negotiating a contract with Troy Clothing Company to provide denim cloth on a weekly basis. Burlingham has established its monthly available production capacity for this contract to be between 0 and 600 yards, according to the following probability distribution:

Troy Clothing's weekly demand for denim cloth varies according to the following probability distribution:
Simulate Troy Clothing's cloth orders for 20 weeks and determine the average weekly capacity and demand. Also determine the probability that Burlingham will have sufficient capacity to meet demand.