CASE STUDY FOR APPLYING THE DECISION TREE Pipe Steel Co.'s businesses have been very prosperous for the past ve years. The company manufactures a wide range of steel products, such as light structural steel railings, ladders and frames. The current manual method for handling materials causes excess inventory and congestion. Pipe Steel Co. is evaluating whether to purchase a rail transportation system or forklift vehicle to increase capacity and improve manufacturing efciency- If the rail system is purchased, the annual results will be $ 25,000 if demand increases, 32 10,000 if demand does not change, or a loss of - $ 65,000 if demand falls. If the forklift is purchased, the annual results will be $ 10,000 if demand increases, $ 5,000 if demand does not change, or a loss of - $ 25,000 if demand falls- A probability of 0.30 that the demand is high and 0-20 that it is low and 0-50 that the demand is unchanged is estimated. 1. Draw a decision tree for this problem and calculate the expected value of the results of each alternative. 2- What is the best alternative, based on the expected values