The objective (1a) is to maximize the total system profit (also known as economic surplus), which is given by the total demand revenue and the total supply costs, transformation costs (including operating and annualized capital), and transport costs. The constraint (1b) are balances at all geographical locations n ∈ N and for each product p ∈ P. Constraints (1c) through (1f) are capacity limits for demand, supply, transport, and transformation. Constraint (1f) incorporates binary variables y m ; these variables indicate whether the facility is deployed at the given location. If y m = 0, the facility is not placed, and processing capacity is zero; otherwise, y m = 1 and the facility is installed and its capacity is available.