Ceylon Steel produces steel alloy plates. The firm wants to locate a central distribution center in the northern province of the country that will serve all of its regional centers. The firm evaluated five locations (Jaffna, Kilinochchi, Mannar, Mullaitivu, Vavuniya), and using the center of gravity method narrowed down its choice to Jaffna.The firm's supply chain manager decides to get all the distribution center space for the Jaffna location from the spot/cash market as needed. She anticipates uncertainty in demand and spot/cash prices for the distribution center space over the coming three years. Forecasts indicate that the current demand at the Jaffna distribution center is for 100,000 steel alloy plates per year; thefirm's distribution center requirements are 1,000 square feet of distribution center space for every 1,000 steel alloy plates. Also, from one year to the next, demand is expected to increase by 20% with a probability of 0.5, or decrease by 20% with a probability of 0.5; the probabilities of the two outcomes are independent and unchanged from one year to the next.