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A facility can be opened at each of a set J of potenial locations to supply a set I of customers. Facility j∈J provides capacity Uj and requires a fixed investment cost(in$) of Fj. Customer i demands bi units. The (variable) cost of supplying a unit to customer i from facility j is Cij(in $ per unit). Formulate a model to minimize cost for this capacitated facility location problem.

Operation Management, Management Studies

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