Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures thewashers at four locations around the country. New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the followingnumbers of washing machines to be produced at each location:New York CityFort WorthSan DiegoMinneapolisBindley has three plants that can produce the motors. The plants and production capacities areBoulderMaconGaryDue to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they wereproduced 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.)MaconGaryPRODUCED AT NEW YORK CITYBoulder12From/ToBoulderMaconGaryRequirements75,00045,00060,00050,000100,000145,00065,000Candidate SolutionBoulderMaconGaryTotal suppliedProfit2411BoulderMaconGaryTotal profitGiven 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.a. Develop a transportation grid for this problem.New York City045,000075,000SHIPPED TOFORT WORTH152413Fort Worth45,00040,000045,000SAN DIEGO202426MINNEAPOLIS16San Diego Minneapolis080,00015,00060,00000103250,00050,000b. Find the optimal solution using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)Supply100,000145,00065,000Total Shipped

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Answered: Bindley Corporation has a one-year…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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