Bindley Corporation has a one-year contract to supply motors for all washing machines produced by…

Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Limited. Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location:
Planned Production by Location
Location
Number
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
Plant Capacities
Plant
Capacity
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 the dollar profit per unit. (Shipment will be mode in lots of 1,000.)
Profit per 1,000 Units (Dollars)
From / To
New York City
Fort Worth
San Diego
Minneapolis
Boulder
7
15
11
14
Macon
26
18
18
11
Gary
10
22
17
15
Given profit maximization as a criterlon, 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.
Transportation Grid
From/To
New York City
Fort Worth
San Diego
Minneapolis
Supply
Boulder
Macon
Gary
Requirements
b. Find the optimal solution using Microsoft Excel.
Note: Leave no cells blank – be certain to enter