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Problem 14-7 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.) 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. From/To New York Fort Worth San Diego Minneapolis Supply Boulder 7 11 8 13 100000 Macon 20 17 12 10 100000 Gary 8 18 13 16 150000 Requirements 50000 70000 60000 80000 b. Find the optimal solution using Microsoft Excel. (Note: Due to existing transportation contracts, Macon must ship 50,000 motors to Fort Worth and 0 motors to San Diego. These requirements are already shown in the Candidate Solution below.) (Leave no cells blank - be certain to enter "0" wherever required.) Total Shipped Candidate Solution Boulder Macon Gary Total supplied 7 20 81 50,000 50000 0 r Profit Boulder Macon Gary 0 50000 0 10000 ol 50000 0 20000 60000 70000 Total profit 4240000