Imagine you are laying out a new hospital. You have a fixed set of rooms (locations) and a set of departments (facilities). Some departments send patients back and forth constantly — the emergency room and radiology, say — while others barely interact. The rooms, meanwhile, sit at fixed distances from one another.
Your job: decide which department goes in which room so that the total walking is as small as possible. The cost of any layout is simple to write down — for every pair of departments, multiply how much flow passes between them by the distance between the rooms you put them in, and add it all up.
This is the Quadratic Assignment Problem (QAP), posed by Tjalling Koopmans and Martin Beckmann in 1957. It sounds like a tidy little optimization. It is, in fact, one of the most stubbornly NP-hard problems we know — so hard that some instances with just 30 facilities have resisted exact solution for decades on serious hardware.
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