Question: Problem 2. Recall the class example for Two-Stage Stochastic Programming, which was extended from our Wyndor Glass company problem. Suppose that the demands have the

Problem 2. Recall the class example for Two-Stage

Problem 2. Recall the class example for Two-Stage Stochastic Programming, which was extended from our Wyndor Glass company problem. Suppose that the demands have the following distribution. Use C1 = 0.2,c2 = 0.3, C3 = 0.1 for the cost of each hour in plants 1, 2, 3, respectively. Nm Demand Outcome Scenario Probability (Product 1, Product 2) 1 (5,5) 0.3 2 (3,6) 0.2 3 (3,8) 0.1 4 (2,5) 0.2 5 (2,8) 0.2 a) Use this information to formulate a linear programming model for the Two-Stage Stochastic Programming problem. b) Solve it in Excel and give you answers for different scenarios. (For example, in scenario 1, the optimal solution is x1=XXX, X2=YYY, the total profit will be XXX; in scenario 2, the solution will be x1=..., X2=..., total profit will be ...) )

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