What's with the flags?

This is what the flag-raising at the medal ceremony looks like when two athletes tie for silver.  Gold medalist Yannick Agnel of France led from wire to wire to won with a time of 1:43.14. The silver medal was shared by Taehwan Park of South Korea and Yang Sun of China, who both touched the wall in 1:44.93.  No bronze medal was awarded.  This situation made me question how the Olympic committee planned for such things.  Do they have three big bins of medals they draw from when awarding winners?  "Hey Fred, go get me a gold and two silvers.  What? - No.  No bronze and no fries with that either."  I always assumed there were a limited/exact number of medals produced for the Games.  Any one want to research the answer to this and post the answer? 

And if I were China, I'd ask why my flag was below the South Korean flag even though the athletes swam the exact same time and both won silver.