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The facility location problem is a mixed integer linear programming problem concerned with the optimal placement of facilities to minimize transportation costs while considering factors

The facility location problem is a mixed integer linear programming problem concerned with the optimal placement of facilities to minimize transportation costs while considering factors like avoiding placing hazardous materials near housing and competitors' facilities. Common application of this problem is the statistical cluster analysis, the assignment of costumers to servers, etc. Suppose we have a set of m warehouses and a set of stores. We wish to assign each store to a warehouse in such a way that the cost of delivering the commodities from the warehouses to the store is minimized, while satisfying the demand of each store.

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