The LG has a discount rate of k01. The revenue for one item is 1.55 . According to LG, 1000 sq. ft. of warehouse space is needed for 1000 units of demand. The current demand =100,000 units per vear and the initial market price market price 1.25/item. The Demand and spot price are uncertain: - Demand: can go up by 10% with p1=0.4, go down by 10% with p2=0.4, down by 20% with p3=0.2 - Spot prices: can 80 up br 20% with q=0.5 or down by 20% with 1q=0.5. 1. Provide the decision tree for two periods (period 0 and period 1), mentioning the Demand and spot market price at each node ( 2 points) Three offers are available: a) Spor Market, b) Lease inflexible for 100.000 items with price 15/1 tem, c) Lease flexble. With uptront parment of 52,000 , the company will have the flexibility between 80,000 and 100,000 , with price 15/ tem 2. Evaluate each of these 3 offers and identify the best ( 2 points each): formula: Profit at node - revenue ot node j cost at node j+ Expected Profit ot node j/(1+k) occurrence of node i and Profit (k+1) the Profit at node iand period j+1 QUESTION 6 Agg. Plan [8 Points] Consider three families of products with related information and percentages 1. Calculate the missing values: Aggregate Materiai cost/ unit, the aggregate revenue per unit; the Net Production time for A, the Net production time for B and the B, and the Agregate Net production time ( 3 points)