Ashleys Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centres 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 show in the table below:

FROM PLANTS/ TO DISTRIBUTION CENTRES	Los Angeles	New York	Normal Production	Unit Production Cost ($)
Atlanta	$8	$5	600	6
Tulsa	4	7	900	5
New Orleans	5	6	500	4
Houston	4	6	500	3
Forecast Demand	800	1200	2000

Q: Which of the new possible plants should be opened?

*Sufficient detail should be included to show the major steps in the decision making process.