Question
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
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 | 50,000 |
Fort Worth | 70,000 |
San Diego | 60,000 |
Minneapolis | 80,000 |
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder | 100,000 |
Macon | 100,000 |
Gary | 150,000 |
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 | 7 | 11 | 8 | 13 |
Macon | 20 | 17 | 12 | 10 |
Gary | 8 | 18 | 13 | 16 |
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.
b. Find the optimal solution using Microsoft Excel. (Note: Due to existing transportation contracts, Macon must ship 50,000 motors to Fort Worth and 0 motors to San Diego. These requirements are already shown in the Candidate Solution below.) (Leave no cells blank - be certain to enter "0" wherever required.)
Candidate Solution | Total Shipped | ||||
Boulder | |||||
Macon | 50,000 | 0 | |||
Gary | |||||
Total supplied | |||||
Profit | |||||
Boulder | |||||
Macon | |||||
Gary | |||||
Total profit | $ | ||||
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