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Bindley Corporation has a one - year contract to supply motors for all washing machines produced by Rinso Ltd . Rinso manufactures the washers at
Bindley Corporation has a oneyear contract to supply motors for all washing machines produced by Rinso Ltd Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location:
New York City
Fort Worth
San Diego
Minneapolis
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder
Macon
Gary
Due to varying production and transportation costs, the profit Bindley earns on each units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. Shipment will be made in lots of
SHIPPED TO
PRODUCED AT NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS
Boulder
Macon
Gary
Given profit maximization as a criterion, Bindley would like to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination.
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