Bindley Corporation has a one- year contract to supply motors for all washing machines produced by Rinso

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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, 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.)


Bindley Corporation has a one- year contract to supply motors


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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Operations and Supply Chain Management

ISBN: 978-0078024023

14th edition

Authors: F. Robert Jacobs, Richard Chase

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