The capacitated plant location problem (CPLP) is a very well studied problem in literature. In this paper we give a new formulation of the same. We first give an intuitive justification for the addition of new constraints. Consider the extreme case when transportation costs are very high, then here we will locate many plants that will reduce the transportation costs. And on other hand, when transportation costs are very low, then may locate very few plants. We introduce a new formulation of CPLP that addresses the above mentioned situation.
(Key Words: CPLP, SPLP, New Formulation).