Question: Bindley Corporation has a one year contract to supply motors

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 50,000
Fort Worth 70,000
San Diego 60,000
Minneapolis 80,000
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder 100,000
Macon 100,000
Gary 150,000
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.)

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 MicrosoftExcel.

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  • CreatedApril 09, 2014
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