Problem 15-7 (Algo)

Bindley corportion has one-year contract to supply motors for all wasing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York City, forth Worth, San Diego, and Minneapolis. Plans call for the follwoing of washing machines to be produced at each location; New York City - 55,000; Fort Worth - 71,000; San Diego - 75,000; Minneapolis - 75,000.

Bindley has three plants that can produce the motors. The plants and production capacities are: Boulder - 110,000; Macon - 80,000; Gary - 165,000.

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 th dollar profit per unit (Shipment will be made in lots of 1,000).

Shipped To

PRODUCED AT NEW YORK CITY FORT WORTH SAN DIEGO MINNEAPOLIS

Boulder 7 15 11 14

Macon 26 18 10 11

Gary 10 22 17 15

Given profit maximization as a criterion, Bindley would like to determine how many motors should be produced at each plant andhow many motors should be shipped from each plant to each destination.

QUESTIONS:

a. Develop a transportation grid for this problem.

b. Find the optimal solution using Microsoft Excel. (Leave no cells blank-be certain to enter "0" whereever required).

SORRY BUT I AM NOT GOOD IN MATH.

THANKS FOR ALL YOUR HELP WITH THESE PROBLEMS.

cheroyenlewis@ymail.com