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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	50000
Fort Worth	70000
San Diego	60000
Minneapolis	80000

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

Boulder	100000
Macon	100000
Gary	150000

Due to varying production and transportation costs, the profit Bindley earns on every 1,000 units depends on where they were produced and where they were shipped. Thefollowing 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	7	11	8	13
Macon	20	17	12	10
Gary	8	18	13	16

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.

Step by step solution

01

(a) Transportation grid

The lines on the graph paper are an example of a grid.Agridis something that forms a line that intersects each other in a way that results in the formation of a square.

02

(b) Optimal Solution

An optimal solutionis a feasible solution in which the objective function reaches its maximum or minimum value.

Total shipped

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