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we have a classic transportation problem with binary constraints here so a company has a choice of the designing their supply chain and they have a choice of starting three factories one brazil philippines and mexico if they have a factory in brazil they incur a fixed cost of fifty thousand dollars if they have one philippines its thirty five thousand dollars and if they have a factory in mexico its sixty thousand dollars these fixed costs are incurred only if they have a factory there um and then there are the variable cost brazil has thousand dollars per unit and nine hundred dollars per unit and sixteen hundred dollars per unit in mexico the production capacities in these three factories are given by these three numbers here and these are the unit transportation costs in dollar hundreds so if i ship something from brazil to central america i have a cost of nine hundred dollars so from philippines to europe is four hundred dollars now my objective here is to minimize the total cost