Bindley corporation has a one-year contract to supply

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 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	30,000
Fort Worth	55,000
San Diego	65,000
Minneapolis	65,000

Bindley has three plants that can produce the motors. The plants and production capacities are

Boulder	100,000
Macon	120,000
Gary	90,000

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	10	13	15	12
Macon	22	25	22	16
Gary	14	20	28	29

 

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	Fort Worth	San Diego	Minneapolis	Supply
Boulder
Macon
Gary
Requirements

b.	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					mce_markernbsp;