problenm This problem is a combination of binary integer programming and transportation A company has 6 sales centers in Ontario and has decided to open new depots to deliver its products from the depots to the sales centers. There are two types of cost associated with the delivery: set-up costs (fixed costs) are capital costs which may usually be written off over several years, and transportation costs which depend on the distance covered. We assume that they have been put on some comparable basis, by taking the costs over a year. There are 6 sites available for the construction of new depots to deliver products to the sales centers. The following table (Table 1) gives the transportation costs (in thousand dollars) of delivering the entire demand of each sales center from a depot (not the unit costs). Certain deliveries that are impossible are marked with the infinity symbol oo. Sales Centers Depot 1 2 3 4 5 6 100 80 50 50 60 100 120 90 60 70 65 100 140 110 80 80 75 130 160, 125 100 100 80 150 190 150 130 0 000 200 180150 Table I: Transportation costs for satisfying entire demand of each sales center The construction costs (fixed cost) for each depot as well as the capacity of each depot are listed in Table 2. Depot Cost(1000s) Capacity(tons) 3500 9000 10000 4000 3000 9000 300 250 100 180 275 300 Table 2: Fixed costs and capacity limits of the depot locations