Washing machines to be produced at each location

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Reference no: EM13877542

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;  

Reference no: EM13877542

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