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?

Find 1) the total transportation cost, and 2) the optimal product quantities for each routes.

	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)
Houston	$4	$6	500	$3 (anticipated)
Forecast demand	800	1200	2000