Operations Management Bindley Corporation Transportation Grid
Bindley Corporation has 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 Fort Worth San Diego Minneapolis 50,000 70,000 60,000 80,000
Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon Gary 150,000 100,000 150,000
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 Boulder Macon Gary New York 7 20 8 Fort Worth 11 17 18
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.
Costs From / To Boulder Macon Gary DesDnaDon Demand $5,700,000.00 Costs From / To Boulder Macon Gary Received
New York $7.00 $20.00 $8.00 50000
Fort Worth $11.00 $17.00 $18.00 70000
San Diego $8.00 $12.00 $13.00 60000
Minneapolis $13.00 $10.00 $16.00 80000
Source Capacity 150000 100000 150000
New York 0 100000 0 100000
Fort Worth 0 0 110000 110000
San Diego 20000 0 40000 60000
Minneapolis 80000 0 0 80000
Sent 100000 100000 150000
The soluDon is shown above in cells [B43 to E45]. The demand at each locaDon is met. The maximum profit is $5700000.
units depends accounting
San Diego 8 12 13
Minneapolis 13 10 16
mum profit is
Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon Gary 150,000 100,000 150,000
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 Boulder Macon Gary New York 7 20 8 Fort Worth 11 17 18
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.
Costs From / To Boulder Macon Gary DesDnaDon Demand $5,700,000.00 Costs From / To Boulder Macon Gary Received
New York $7.00 $20.00 $8.00 50000
Fort Worth $11.00 $17.00 $18.00 70000
San Diego $8.00 $12.00 $13.00 60000
Minneapolis $13.00 $10.00 $16.00 80000
Source Capacity 150000 100000 150000
New York 0 100000 0 100000
Fort Worth 0 0 110000 110000
San Diego 20000 0 40000 60000
Minneapolis 80000 0 0 80000
Sent 100000 100000 150000
The soluDon is shown above in cells [B43 to E45]. The demand at each locaDon is met. The maximum profit is $5700000.
units depends accounting
San Diego 8 12 13
Minneapolis 13 10 16
mum profit is