Suppose you have a machine that can make a product Z. The machine's maximum output is 11,000 Z's per year.
Now suppose that you know the demand for the product will be 10,000 per year with probability 0.5, and 15,000 with probability 0.5.
My question is whether the expected output is 10,500 or 11,000.
To argue it is 10,500, you could say that if the demand is 10,000, you will make 10,000 with probability 0.5, and if the demand is 15,000, you will make 11,000 with probability 0.5. Therefore the expected number of Z you make is 10,500.
However, you could say that the expected demand is 12,500, and therefore the expected number of Z you would make is therefore 12,500, but this is capped at 11,000 and therefore the expected number of Z you would make is 11,000.
The first reasoning is correct. Since the machine cannot produce more than $11,000$, it doesn't matter whether the demand is $11,000$, $15,000$, or $15,000,000$ ... you'll just have to cap production at $11,000$