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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 : units;
Quarter : units;
Quarter : units;
Quarter : units.
At the beginning of the first quarter, the company has devices in the inventory. During each
quarter, Faraday can produce up to devices at a cost of $ per device using regular employee
hours. By having employees work overtime during a quarter, it can produce additional devices
at a cost of $ per device. Faraday Corporation can also purchase up to devicemonth from
a subcontractor at a cost of $device It costs $ per quarter to hold a device in inventory.
Demand can be backlogged at a cost of $devicequarter
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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