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Problem 1 Rototech Corp. supplies motors for all washing machines manufactured by Launders Inc. The motors are produced in Rototech s facilities located in New

Problem 1
Rototech Corp. supplies motors for all washing machines manufactured by Launders Inc.
The motors are produced in Rototechs facilities located in New York City, Fort Worth, and
San Diego. Rototechs production capacities are as follows:
New York City 60,000
Fort Worth 40,000
San Diego 60,000
Launders Inc. manufactures the washers at five locations around the country. Based on the
manufacturing plans over the next 12 months, the following table provides the number of motors
required at each Launders Inc. manufacturing location:
Boulder 20,000
Minneapolis 30,000
Gary 30,000
Memphis 50,000
Macon 20,000
Shipments will be made in lots of 1,000 motors from Rototech to Launders. Due to varying
production and distribution costs, Rototechs profits depend on where the motors are produced
and where they are shipped. Based on estimates from Rototechs Accounting Department, the
following table provides the profit in dollars per unit.
Shipped To
Produced at Boulder Minneapolis Gary Memphis Macon
New York $10 $15 $16 $14 $17
Fort Worth $15 $16 $18 $19 $18
San Diego $16 $14 $12 $15 $12
Given profit maximization as a criterion, use the Transportation Method of Linear
Programming to determine the optimum ship quantity from each Rototech location to
each Launders Inc. location. Include the following items in your response:
(a) Submit your Excel file Solver add-on
Demonstrate your understanding of the Solver results by answering the following questions:
(b) Based on your solution, how many motors should be shipped from Fort Worth to Memphis?
(c) Based on your solution, report how much additional production capacity is still available at each of Rototechs production plant

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