In the manufacturing industry, unknown risk can create considerable concern and hand-wringing. However, known risk can be one of the most valuable tools decision makers have in avoiding production loss and wasted costs, implementing accurate enterprise resource planning strategies and preventing supply chain interruption. The challenge of identifying risk and quantifying its probability can be addressed with simulation software. Simulation software is often powered by a process called Monte Carlo simulation (MCS), which is a computerized, analytical process that is used to evaluate and measure the risk associated with any given venture or project. It allows users to understand not only what could happen in a given situation, but what the probabilities are of different outcomes occurring. This enables decision makers to create better strategies, define contingencies and allocate resources more effectively.