Operations Management Bindley Corporation Transportation Grid

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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...
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