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, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location:

New York	90,000
Fort Worth	88,000
San Diego	100,000
Minneapolis	58,000

Bindley has three plants that can produce the motors. The plants and production capacities are

Boulder	114,000
Macon	124,000
Gary	134,000

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	FORT WORTH	SAN DIEGO	MINNEAPOLIS
Boulder	16	11	10	14
Macon	27	24	17	18
Gary	31	12	29	20

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.

Develop a transportation grid for this problem.

From/To	New York	Fort Worth	San Diego	Minneapolis	Supply
Boulder					(C)
Macon	(A)
Gary
Requirements		(B)

Question 17 options:

a)	(A)=27, (B)=88,000, (C)=124,000

b)	(A)=20, (B)=60,000, (C)=100,000

c)	(A)=27, (B)=88,000, (C)=114,000

d)	(A)=31, (B)=88,000, (C)=114,000

e)	(A)=16, (B)=90,000, (C)=114,000

Fill out the blank in the candidate solution table.

Candidate solution	New York	Fort Worth	San Diego	Minneapolis	Total shipped
Boulder				(B)	78,000
Macon					124,000
Gary		(A)			134,000
Total shipped	90,000	88,000	100,000	58,000	336,000

Question 18 options:

a)	(A)=0, (B)=0

b)	(A)=88,000, (B)=58,000

c)	(A)=0, (B)=58,000

d)	(A)=58,000, (B)=88,000

e)	(A)=88,000, (B)=0

Find the optimal solution (C) using Excel Solver.

Profit	New York	Fort Worth	San Diego	Minneapolis
Boulder
Macon
Gary
Total profit					(C)

Question 19 options:

a)

8,170,000

b)

4,240,000

c)

2,580,000

d)

6,510,000

e)

7,695,000