Transfusion Management System is software that oversees blood transfusion processes. Blazer Hospital has a home$-$grown Transfusion Management System $($TMS$),$ which is outdated and cannot handle its current demand volume. Blazer Hospital is considering three alternatives for its TMS:

$$ Option $1)$ Do nothing

$$ Option $2)$ Maintain its existing digital platform $($$$400,000)$ or

$$ Option $3)$ Purchase a new application by making a new contract with an IT vendor.

o LABSolution $$ regular product $($$$800,000)$

o LABSolution $$ pilot product $($varying costs$)$

o A substitute vendor $($$$600,000)$

No matter what decision the hospital makes, it expects increasing utilization of TMS $(0\mathrm{.}6)$ or no increase $(0\mathrm{.}4)$ in the next five years. If Blazer Hospital does nothing $($with Option $1),$ there is no cost or profit. If Blazer Hospital maintains its existing digital platform $($with Option $2),$ and there is a growing need of TMS $($increasing demand$),$ it will make $$2,000,000.$ if there is no growth in demand, it will only make $$225,000.$ If it decides to purchase an application through outsourcing $($Option $3),$ it will wait to see if there is demand growth or not before it makes the next decision as follows:

$$ If there is growth initially,

o One of its decisions can be to make a contract with LABSolution and implement the system at this time which will cost $$800,000.$

$$ After expansion, if growth continues $($with a probability of $0\mathrm{.}8),$ it will make $$3,000,000.$

$$ After expansion, if there is no continued demand growth $($with a probability of $0\mathrm{.}2),$ it will only make $$700,000.$

o Alternately, they could buy a pilot system, which can lead to a net expected profit of $$450,000($revenue $$ cost$).$

$$ If there is no increasing demand initially,

o Look for a substitute vendor for $$600,000($purchase $+$ implementation costs$).$

$$ If they build an application with a substitute vendor and market turns around and there is demand growth $($with a probability of $0\mathrm{.}3),$ they will make $$1,300,000$

$$ If the market does not turn around $($with a probability of $0\mathrm{.}7),$ they will only make $$700,000$

o Buy a pilot system from LABSolution, which can lead to a net expected profit of $$350,000($the value has decreased$).$

Draw a Decision Tree for the Blazer Hospital TMS problem by referring to the values in the spreadsheet and expanding the tree structure $[40$ MARKS$].$ Solve the tree to generate decision paths by indicating values and decisions at the nodes and lines $[40$ MARKS$].$ Clearly state your decision$($s$)$ below based on different event scenarios $[20$ MARKS$].$