Consumers
Each class of the consumers, k=1,…,o, can purchase the product from any one (or more) of the n retailers.
Transportation cost of class k consumers for procuring the product from retailer j
the amount purchased by kth class of consumer from retailer j.
Transportation time of class k consumers for procuring the product from retailer j
Generalized price as perceived by class k consumers
Elastic demand of class k as a function of perceived price