Question: please dont use the internet and make a tree diagram please Question (3): Answer the following problem: (10 marks) A software developing corporation has determined

please dont use the internet
and make a tree diagram please please dont use the internet and make a tree
Question (3): Answer the following problem: (10 marks) A software developing corporation has determined that it needs to expand its current capacity. The decision has come down whether to expand now with a large facility or to undertake small expansion. Management has estimated the following: - The demand when being high is 0.60 - The demand when being Low is 0.40 Profits for cach alternative have been estimated: Large expansion has an estimated profitability of either $1000 000 or $600 000, depending on whether demand turns out to be high or low. Small expansion has a profitability of $500 000 assuming that demand is low. Small expansion with an occurrence of high demand would require considering whether to expand further. If the company expands at that point, the profitability is expected to be $700 000. If it does not expand further, the profitability is expected to be S500 000 Required: 2 Draw a decision tree diagram and add the information that you are given(marks) b. Compute the (EV) of the small and large expansion. (5 marks) Question (4): Answer the following questions: (6 marks) - What are the assumptions of the EOQ model and what is the meaning of the reorder point?(2 marks) b. Find the Economic Order Quantity (FO) and the reorder point, given the following information: (4 marks) Annual Demand - 20 000 units. Ordering cost-150$ per order. Annual holding cost-S 12 per unit. Lead time-10 days. The company operates 250 days/year Daily demand -40 units/day

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