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Problem 15-7 (Algo) Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Lid. Rinso manufactures the washers at
Problem 15-7 (Algo) Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Lid. 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 85, 090 Fort Worth 84, 000 San Diego 95 , 000 Minneapolis 90, 060 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 105, 000 Macon 145, 000 Gary 132, 006 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 15 20 20 15 Macon 24 28 16 23 Gary 13 16 78 26 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. a. Develop a transportation grid for this problem. From/To New York City Fort Worth San Diego Minneapolis Supply Boulder Macon Gary Requirementsb. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.) Candidate Solution Total Shipped Boulder Macon Gary Total supplied Profit Boulder Macon Gary Total profit
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