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Although the problem encountered in the California Manufacturing Co. casestudy can be described as aproject selectionproblem (as was done at thebeginning of the preceding section),

Although the problem encountered in the California Manufacturing Co. casestudy can be described as aproject selectionproblem (as was done at thebeginning of the preceding section), it could just as well have been calledasite selectionproblem. Recall that the company's management needed toselect a site (Los Angeles or San Francisco) for its new factory as well as forits possible new warehouse. For either of the possible sites for the newfactory (or the warehouse), there is ayes-or-no decisionfor whether thatsite should be selected, so it becomes natural to represent each suchdecision by a binary decision variable.Various kinds of site selection problems are one of the most common typesof applications of BIP. The kinds of facilities for which sites need to beselected can be of any type. In some cases, several sites are to be selectedfor several facilities of a particular type, whereas only a single site is to beselected in other cases

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