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The problem models the following real-life problem:
:There are a set of ''n'' facilities and a set of ''n'' locations. For each pair of locations a ''distance'' is specified and for each pair of facilities a ''weight'' or ''flow'' is specified (e.g., the amount of supplies transported between the two facilities). The problem is to assign all facilities to different locations with the goal of minimizing the sum of of the distances
The problem statement resembles that of the [[assignment problem]], only the [[cost function]] is expressed in terms of quadratic inequalities, hence the name.
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