A company has two production facilities, #1 and #2 and the capacities of facilities at #1 and #2 are Ki and 2 respectively. There are fixed costs 1 and 2 to build facility #1 and #2, respectively. The company needs to meet demand from four markets at different locations. Assume the cost of producing and shipping one unit product from facility i (i 1,2) to market j ( 1,2,3,4)isc The demand from all markets are given as D, G 1,2,3,4). The company's goal is to allocate the demand from different markets to the two facilities so that the cost is minimized Formulate an optimization model; and identify decision variables, objective function and constraints.