Extend formulation (2.57)–(2.60) to include facility location decisions and fixed facility location costs. Clearly define all new notation you use separating inputs from decision variables. State the...

Extend formulation (2.57)–(2.60) to include facility location decisions and fixed facility location costs. Clearly define all new notation you use separating inputs from decision variables. State the objective function and constraints in both words and with notation.

Consider the coffee example of Section 2.9. Suppose that we can only sell 100 bags of the Supreme coffee at $10.00 per pound. If we price the coffee at $9.50 per pound, we can sell 200 bags and at $9.0 we can sell 300 bags. What is the optimal price for the coffee? Assume we have to produce (and sell) an integer number of bags of each type of coffee.