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Business Models Billets are transported from 2 different Billet Mills

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Information Management - Business Models Billets are transported from 2 different Billet Mills (M = {1, 2}) to distribution centres (D = {3, 4, 5}). These distribution centres serve five customers (C = (6.... 10)). Billet Mill one can produce up to 260 billets, Billet Mill two has a capacity of 180 billets. The yield at Billet Mill one is N(0.85,0.1), while the yield at Billet Mill two is N(0.82, 0.05). Customer 6, 7 and 8 require 25 billets each, but customer 9 requires N(115, 10) billets and customer 10 needs N(100,15). To meet this demand. What number of billets can flow through each arc at the least possible cost? Hint: Use Expected Value Optimization technique.

 

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