Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 one-year 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 20,000
Fort Worth 100,000
San Diego 80,000
Minneapolis 95,000
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder 100,000
Macon 150,000
Gary 80,000
Due to varying production and transportation costs, the profit Bindley earns on each 1,000 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 1,000.)
SHIPPED TO
PRODUCED AT NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS
Boulder 15212125
Macon 2926167
Gary 8222321
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.
a. Develop a transportation grid for this problem.
b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Social Media Management

Authors: Ben Shields

1st Edition

019029633X, 978-0190296339

More Books

Students also viewed these General Management questions

Question

Define human resource management.

Answered: 1 week ago