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-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table below.

Which of the new possible plants should be opened?

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TO DISTRIBUTION UNIT CENTERS LOS NEW NORMAL FROM ANGELES YORK PRODUCTION PRODUCTION COST (5) PLANTS ATLANTA TULSA NEW ORLEANS HOUSTON FORECAST DEMAND $8 $4 $5 $4 800 $5 $7 $6 $6 1,200 600 900 500 500 2,000 Existing plants 4 (anticipated) Proposed locations 3 (anticipated) Indicates distribution cost (shipping, handing, storage) will be $6 per carrier if sent from Houston to New York