Question $5$ options:

$22.$ Expansion Planning Ashley's Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities, either New Orleans or Houston. The pertinent production and distribution costs $($shipping$,$ handling and storage$),$ as well as the plant capacities and distribution demands, are shown in the following table:

From $\backslash$ To

Los Angeles

New York

Normal Production

Unit Production Cost

Existing Plants

Atlanta

$$8$

$$5$

$600$

$ $6$

Tulsa

$$4$

$$7$

$900$

$ $5$

Proposed Plants

New Orleans

$$5$

$$6$

$500$

$ $4($anticipated$)$

Houston

$$4$

$$6$

$500$

$ $3($anticipated$)$

Forecasted Demand

$800$

$1,200$

$2,000$

Which of the new possible plants should be opened?

You will need to solve this problem $2$ times. First use the values for New Orleans, then use the values for Houston.