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A book store needs to place an order for calendars. Each calendar sells for $10. Customer demand is assumed to be normally distributed with mean 200 and standard deviation 60. The number of calendars that the book store's supplier can supply is uniformly distributed between 125 and 200.
The book store first places an order, and then the supplier determines the number of calendars he can actually supply. The supplier charges $8 per calendar if he can supply the entire order; otherwise he charges only $7.50 per calendar.
The manager of the book store has decided to order either 150 or 175 calendars.
Use Monte Carlo simulation to help the manager choose between these two order quantities.
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