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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 four locations
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 Fort Worth San Diego Minneapolis 20,000 100,000 80,000 95,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon Gary 100,000 150,000 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.) PRODUCED AT NEW YORK CITY Boulder 15 SHIPPED TO FORT WORTH 21 SAN DIEGO 21 MINNEAPOLIS 25 7 21 FTTTT Macon Gary 29 8 26 22 16 23 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. From/To New York City Fort Worth San Diego Minneapolis Supply Boulder Macon Gary Requirements b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.) Candidate Solution Boulder Macon Gary Total supplied Profit Boulder Macon Gary Total profit Total Shipped
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