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| Boralis manufacture backpacks for hikers. The demand for its products during the peak period of March to June of each year is 100, 200, 180, |
| and 300 units, respectively. The company uses part time labor to accommodate fluctuations in demand. It is estimated that Boralis can |
| produce 50, 180,280, and 270 units in March through June. A current month’s demand can satisfied in one of the three ways. |
| (1) Current month’s production at the cost of $40 per pack |
| (2) Surplus production in an earlier monthly at an additional cost of $0.50 per pack per month |
| (3) Surplus production in a later month (back-ordering) at an additional penalty cost of $2.00 per pack per month. |
| Boralis wishes to determine the optimal production schedule for the four months |
| (A) Set up the transportation table |
| (B) Model for this problem |
| (C) Use Northwest corner, Least cost and Vogel methods to find the initial feasible solutions |
| (D) What is the optimum solution |
