The capacitated facility location problem is the basis for many practical optimization problems. Modeling such problem must take into account both demand satisfaction and capacity constraints. 1. Consider a company with four potential sites for installing its facilities and five demand points. Solve the Transportation Problem by using least cost method. 2. Formulate the problem as a linear programming model. - minimize the sum of facility costs and transportation costs, - subject to capacity (labor, material) and demand / sales constraints. - Define your decision variables (continuous, binary), and state the objective function and constraints explicitly!

The capacitated facility location problem is the basis for many practical optimization problems. Modeling such problem must take into account both demand satisfaction and capacity constraints. 1. Consider a company with four potential sites for installing its facilities and five demand points. Solve the Transportation Problem by using least cost method. 2. Formulate the problem as a linear programming model. - - minimize the sum of facility costs and transportation costs, subject to capacity (labor, material) and demand / sales constraints. Define your decision variables (continuous, binary), and state the objective function and constraints explicitly!