Question: Williams Auto Top Carriers has decided to open a third plant in one of the two cities New Orleans and Houston. Based on the information

Williams Auto Top Carriers has decided to open a third plant in one of the two cities New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm?

1. What is the total transportation cost?

2. What are the optimal product quantities for each routes.

Williams Auto Top Carriers has decided to open a

To Distribution Centers From plants Los Angeles New York Production capacity Unit production cost Existing plants Atlanta $8 $5 600 $6 Tulsa $4 $7 900 $5 Proposed locations New Orleans $5 $6 500 $4 (anticipated) $4 $6 500 $3 (anticipated) Houston Forecast demand 800 1200 2000

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