Problem 14-7 (Algo)

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	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 CITY	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.

Find the optimal solution using Microsoft Excel.

Note: Leave no cells blank - be certain to enter "0" wherever required.

Please explain what formula you used and why,