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. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.) Canidate Solution Total Shipped Boulder Macon Gary Total Supplied Profit Boulder Macon Gary Total Profit

Answer 1

Answer-

PRODUCED AT	NEW YORK	FORT WORTH	SAN DIEGO	MINNEAPOLIS		TOTAL SHIPPED
Boulder	0	0	15000	0		15000
Macon	30000	30000	22000	28000		110000
Gary	0	25000	28000	37000		90000
TOTAL SUPPLIED	30000	55000	65000	65000		215000

PROFIT

PRODUCED AT	NEW YORK	FORT WORTH	SAN DIEGO	MINNEAPOLIS	TOTAL SHIPPED
Boulder	0	0	225000	0	225000
Macon	660000	750000	484000	448000	2342000
Gary	0	500000	784000	1073000	2357000
TOTAL PROFIT	660000	1250000	1493000	1521000	$4924000

TOTAL PROFIT IS $4924000. Note that optimal solution exists.

Production should be as:

Boulder = 15000 units

Macon = 110000 units

Gary = 90000 units