John Rhys [Rhys, J. 1970. Shared fixed cost and network flows. Management Sci. 17(3, November).], and then J. D. Murchland [Murchland, J. D. 1968. Rhys's combinatorial station selection problem. Report LBS-TNT-68, London Graduate School of Business Studies, Transport Network Theory Unit, June 10.], have discussed a model aimed at making an optimal selection in a particular situation having several applications. This note shows how this problem can be solved by identifying minimum cuts with optimal selection.
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Michel Balinski (1970) studied this question.