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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 Fort Worth San Diego Minneapolis Boulder Macon Gary 60,000 70,000 Bindley has three plants that can produce the motors. The plants and production capacities are 105,000 50,000 Macon Gary 105,000 135,000 120,000 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) PRODUCED AT NEW YORK CITY Boulder 14 22 12 SHIPPED TO FORT WORTH 18 26 14 SAN DIEGO 25 14 MINNEAPOLIS 13 14 22 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.

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 Fort Worth San Diego Minneapolis Boulder Macon Gary 60,000 70,000 Bindley has three plants that can produce the motors. The plants and production capacities are 105,000 50,000 Macon Gary 105,000 135,000 120,000 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) PRODUCED AT NEW YORK CITY Boulder 14 22 12 SHIPPED TO FORT WORTH 18 26 14 SAN DIEGO 25 14 MINNEAPOLIS 13 14 22 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.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 Fort Worth San Diego Minneapolis Bindley has three plants that can produce the motors. The plants and production capacities are 105,000 135,000 120,000 Boulder Macon Gary 60,000 70,000 105,000 50,000 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) PRODUCED AT NEW YORK CITY Boulder 14 22 12 Macon Gary SHIPPED TO FORT WORTH 18 26 14 SAN DIEGO 25 14 MINNEAPOLIS 13 14 22 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.
Transcribed Image Text: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 Fort Worth San Diego Minneapolis Bindley has three plants that can produce the motors. The plants and production capacities are 105,000 135,000 120,000 Boulder Macon Gary 60,000 70,000 105,000 50,000 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) PRODUCED AT NEW YORK CITY Boulder 14 22 12 Macon Gary SHIPPED TO FORT WORTH 18 26 14 SAN DIEGO 25 14 MINNEAPOLIS 13 14 22 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.
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. New York City Fort Worth From/To Boulder Macon Gary Requirements Candidate Solution Boulder Macon Gary Total supplied b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.) Profit San Diego Boulder Macon Gary Total profit Minneapolis Supply Total Shipped
Transcribed Image Text: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. New York City Fort Worth From/To Boulder Macon Gary Requirements Candidate Solution Boulder Macon Gary Total supplied b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.) Profit San Diego Boulder Macon Gary Total profit Minneapolis Supply Total Shipped
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