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Math 442/542 Homework 5 (problems 1 and 2 are due Friday, March 11) 1. A company will be producing the same new product at two different factories, and then the product must be shipped to two warehouses. Factory 1 can send an unlimited amount by rail to warehouse 1 only, whereas factory 2 can send an unlimited amount by rail to warehouse 2 only. However, independent truckers can be used to ship up to 50 units from each factory to a distribution center, from which up to 50 units can be shipped to each warehouse. The shipping cost per unit for each alternative is shown in the following table, along with the amounts to be produced at the factories and the amounts needed at the warehouses. To From Factory 1 Factory 2 Distr. center Allocation Unit shipping cost Distribution Warehouse center 1 2 3 7 4 9 2 4 60 90 Output 80 70 a) Formulate the network representation of this problem as a minimum cost flow problem. b) Formulate the linear programming model for this problem. 2. Reconsider the minimum cost flow problem formulated in Problem 1. Ignore the upper bounds on the arcs when solving the following subproblems. a) Obtain an initial BF solution by solving the feasible spanning tree that corresponds to using just the two rail lines plus factory 1 shipping to warehouse 2 via the distribution center. b) Use the network simplex method to solve this problem. 3. Consider the following parlor game between two players. It begins when a referee flips a coin, notes whether it comes up heads or tails, and then shows this result to player 1 only. Player 1 may then (1) pass and thereby pay $5 to player 2 or (2) bet. If player 1 passes, the game is terminated. However, if he bets, the game continues, in which case player 2 may then either (1) pass and thereby pay $5 to player 1 or (2) call. If player 2 calls, the referee then shows him the coin; if it came up heads, player 2 pays $10 to player 1; if it came up tails, player 2 receives $10 from player 1. a) Give the pure strategies for each player. (Hint: Player 1 will have four pure strategies, each one specifying how he would respond to each of the two results the referee can show him; player 2 will have two pure strategies, each one specifying how he will respond if player 1 bets.) b) Develop the payoff the table for this game, using expected values for the entries when necessary. Then identify and eliminate any dominated strategies. c) Show that none of the entries in the resulting payoff table are a saddle point. Then explain why any fixed choice of a pure strategy for each of the two players must be an unstable solution, so mixed strategies should be used instead. d) Give the LP formulations (one for each player) for this problem. 4. This question is worth 4 points. Give yourself one of the following scores: 0, 1, 2, 3, 4 (as you know, A is 4, B is 3, etc.). You will receive this score provided your score is not the highest score selected among all of your classmates'. If your number is the highest (or tied for the highest) one recorded, you will receive 0 points. (Briefly explain your reasoning). Note: Your final grade will be based on the score you get from this problem.☺