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Faraday Corporation must determine how many devices should be produced during each of the next four quarters. Demand is as follows: Quarter 1 : 7

Faraday Corporation must determine how many devices should be produced during each of the
next four quarters. Demand is as follows:
Quarter 1 : 70 units;
Quarter 2 : 70 units;
Quarter 3 : 80 units;
Quarter 4 : 80 units.
At the beginning of the first quarter, the company has 25 devices in the inventory. During each
quarter, Faraday can produce up to 40 devices at a cost of $1000 per device using regular employee
hours. By having employees work overtime during a quarter, it can produce additional 30 devices
at a cost of $1500 per device. Faraday Corporation can also purchase up to 10 device/month from
a subcontractor at a cost of $1450/device. It costs $50 per quarter to hold a device in inventory.
Demand can be backlogged at a cost of $100/device/quarter.
Formulate a balanced transportation problem (Tableau and LP) to minimize the sum of production,
inventory, backlogging, purchasing costs during the next four quarters

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