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 60,000
Fort Worth 68,000
San Diego 99,000
Minneapolis 84,000
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder 115,000
Macon 116,000
Gary 124,000
\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 14 10 12 14
Macon 18 20 19 16
Gary 23 11 22 18
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.
b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)