Faraday
Corporation
must
determine
how
many
devices
should
be
produced
during
each
of
the
next
four
quarters.
Demand
1s
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,
1t
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
mventory.
Demand
can
be
backlogged
at
a
cost
of
$100/device/quarter.
Formulate
a
balanced
transportation
problem
to
minimize
the
sum
of
production,
inventory,
backlogging,
purchasing
costs
during
the
next
four
quarters:
