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Topics: Profit maximization, National Football League, Major League Baseball Pages: 1 (257 words) Published: May 11, 2013
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, Forth Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New york 40,000 Fort Worth 80,000 San Diego 55,000 Minneapolis 75,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 110,000 Macon 125,000 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 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 6 14 10 13 Macon 25 17 9 10 Gary 9 21 16 14 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 SanDiego Minneapolis Supply Boulder Macon Gary Requirements B) Find the optimal soultion using Microsoft Excel Candidate Solution New York Forth Worth San Diego Minneapolis Total Shipped Boulder Macon Gary Total supplied Profit New York Fort Worth San Diego Minneapolis Boulder Macon Gary Total profit
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