After a thorough search, the company developed three site and capacity alternatives, Alternative 1- is to build a 600,00

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After a thorough search, the companydeveloped three site and capacity alternatives, Alternative 1- isto build a 600,000 unit pant in Portland.
Alternative 2- is to build a 600,000unit pant in San Antonio.
Alternative 3- is to build a 300,000unit pant in Portland and a 300,000 unit pant in San Antonio.
The company’s four warehousesdistribute the product to retails. The market research studyprovided the following data:
Warehouse
Expected Annual Demand
Atlanta (AT)
500,000
Columbus(CO)
300,000
Los Angels (LA)
600,000
Seattle (SE)
400,000
The logistics department complied thefollowing cost table specifying the cost per unit to ship theproduct from each plant to each warehouse in the most economicalmanner, subject to the reality of various carriersinvolved
Warehouse
Plant
AT
CO
LA
SE
Baltimore
$0.35
$0.20
$0.85
$0.75
Milwaukee
$0.55
$0.15
$0.70
$0.65
Portland
$0.85
$0.60
$0.30
$0.10
San Antonio
$0.55
$0.40
$0.40
$0.55
As one part of the locationdecision, management wants an estimate of the totaldistribution cost for each alternative. Use transportation methodto calculate these estimates.