Question: ASAP Problem 14-7 (Static) Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers

ASAP Problem 14-7 (Static) Bindley Corporation

ASAP Problem 14-7 (Static) Bindley Corporation

ASAP

Problem 14-7 (Static) 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 50,000 70,000 60,eee 82,800 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon Gary 180, eee 100,00 150,eee 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 Boulder Macon Gary NEW YORK CITY 7 2e SHIPPED TO FORT WORTH SAN DIEGO 11 8 17 12 18 13 MINNEAPOLIS 13 10 16 8 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. From/To Boulder Answer is complete but not entirely correct. New York City Fort Worth San Diego Minneapolis Supply 8 X 12 9 14 100,000 21 X 18% 13 11 X 100,000 2 19 14 17 150,000 50.000 70.000 80.000 80,000 Macon Gary Requirements b. Find the optimal solution using Microsoft Excel. (Note: Due to existing transportation contracts, Macon must ship 50,000 motors to Fort Worth and O motors to San Diego. These requirements are already shown in the Candidate Solution below.) (Leave the cells blank, whenever zero (0) Is required.) Candidate Solution New York City Boulder 0 Answer is complete and correct. Fort Worth San Diego Minneapolis 0 0 10.000 50.000 0 0 20.000 60.000 70,000 70.000 80.000 80,000 Macon 50.000 Total Shipped 10,000 100.000 150.000 260.000 0 Gary Total supplied 50.000 Profit Boulder New York City 0 1,050,000 $ Answe swer is complete but not entirely correct. Fort Worth San Diego Minneapolis 0 0 140,000 900,000 $ 380,000 840,000 1,190,000 $ 4,500,000 Macon 0 0 0 Gary Total profit

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