Section B - Calculation Problems (61 marks) 1. A company wants to determine the optimal replacement policy for its delivery truck. New trucks cost $30,000. The company does not keep trucks longer than 2 years and has estimated the annual operating costs and trade-in values for trucks during each of the 2 years as: Operating Cost Trade-in Value Age in years 0-1 1-2 $15,000 $16,500 $20,000 $16,000 Draw the network representation of this problem consisting of 3 nodes. In the network model drawn, assume each node i corresponds to a point of time during each of the next three years (for example, node 1 = beginning of year 1) when the delivery truck can be replaced. On each arc of the network, also specify clearly the net cost associated with it. Show all necessary workings. (8 marks) alla molim Section B - Calculation Problems (61 marks) 1. A company wants to determine the optimal replacement policy for its delivery truck. New trucks cost $30,000. The company does not keep trucks longer than 2 years and has estimated the annual operating costs and trade-in values for trucks during each of the 2 years as: Operating Cost Trade-in Value Age in years 0-1 1-2 $15,000 $16,500 $20,000 $16,000 Draw the network representation of this problem consisting of 3 nodes. In the network model drawn, assume each node i corresponds to a point of time during each of the next three years (for example, node 1 = beginning of year 1) when the delivery truck can be replaced. On each arc of the network, also specify clearly the net cost associated with it. Show all necessary workings. (8 marks) alla molim