MCL361 Manufacturing System Design: Assignment 1
Due date: 11.59PM February 21, 2021
Submit a PDF file to Moodle named as follows: MCL361_Entry#_Assignment1.pdf
Legible scanned handwritten notes in PDF format should be submitted. Late submissions shall
automatically be awarded a deduction of −3 marks. If there is convincing evidence of cheating,
zero marks shall be awarded to both the parties. Minimum marks: 0; Maximum marks: 5.
1.
[0.5 mark] Describe the Economic Production Lot (EPL) model and explain how it differs
from the EOQ model in one short paragraph.
2.
[0.5 mark] If, in the classical static EOQ model, lead time is greater than cycle period, then
where should you set the reorder point?
3.
[1 mark] What is a mixed strategy? How does it differ from a pure strategy? Illustrate using
an example.
4.
[1 mark] Show that if, in a two-player strategic game, X is a dominant strategy for Player 1
and Y is a dominant strategy for Player 2, then (X, Y) is a Nash equilibrium.
5.
Two hunters are deciding between working together to catch a deer, which is swift and large,
and working independently to catch a much smaller rabbit. It takes both to catch the deer
which they will then share. A caught rabbit only belongs to the hunter who catches it.
Strategy Profiles
Outcomes
Hunter 1’s payoff
Hunter 2’s payoff
(Deer, Deer)
Deer caught but shared
2
2
(Deer, Rabbit)
Only Hunter 2 gets rabbit
0
1
(Rabbit, Deer)
Only Hunter 1 gets rabbit
1
0
(Rabbit, Rabbit)
Each get one rabbit
1
1
a. [0.25 mark] Determine all dominated strategies.
b. [0.25 mark] Determine all prudential strategies and the corresponding security level.
c. [0.25 mark] Determine all Nash equilibria.
d. [0.25 mark] Determine all efficient strategy profiles.
