Here is the problem:

I have hard time understanding the problem , what does it mean by "conservation factors" and how to approach the problem using linear programming.
For what I understand, if a vertex have a total in_flow of 100, and the conservation factor is 50%-80%, then the total out_flow would be in between 50-80% of 100?
It is clearly stated that
a[u] * f_in[u] <= f_out[u] <= b[u] * f_in[u], wherea[u]andb[u]are some non-negative numbers. I do not understand what is unclear here.Yes.
Let's create a variable for each edge(which represents the amount of flow that goes through it). Let's call it
x_i. Then we have constrains for each vertex based on its conservation factors(f_inis the sum of variables for in-going edges andf_outis the sum for of variables for the out-going edges). These constraints are expressed as two linear inequalities for each vertex(except the source and the sink). We need to maximizef_out[s], which is, again, a sum ofx_ifor somei(namely, for those edges that go out of this vertex). So we have reduced it to standard linear programming problem.