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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 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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