Noisy intermediate-scale quantum (NISQ) hardware is almost universally incompatible with full-scale optimization problems of practical importance which can have many variables and unwieldy objective functions. As a consequence, there is a growing body of literature that tests quantum algorithms on miniaturized versions of problems that arise in an operations research setting. Rather than taking this approach, we investigate a problem of substantial commercial value, multi-truck vehicle routing for supply chain logistics, at the scale used by a corporation in their operations. Such a problem is too complex to be fully embedded on any near-term quantum hardware or simulator; we avoid confronting this challenge by taking a hybrid workflow approach: we iteratively assign routes for trucks by generating a new binary optimization problem instance one truck at a time. Each instance has [Formula: see text] quadratic binary variables, putting it in a range that is feasible for NISQ quantum computing, especially quantum annealing hardware. We test our methods using simulated annealing and the D-Wave Hybrid solver as a place-holder in wait of quantum hardware developments. After feeding the vehicle routes suggested by these runs into a highly realistic classical supply chain simulation, we find excellent performance for the full supply chain. Our work gives a set of techniques that can be adopted in contexts beyond vehicle routing to apply NISQ devices in a hybrid fashion to large-scale problems of commercial interest.
Noisy intermediate-scale quantum (NISQ) hardware is almost universally incompatible with full-scale optimization problems of practical importance which can have many variables and unwieldy objective functions. As a consequence, there is a growing body of literature that tests quantum algorithms on miniaturized versions of problems that arise in an operations research setting. Rather than taking this approach, we investigate a problem of substantial commercial value, multi-truck vehicle routing for supply chain logistics, at the scale used by a corporation in their operations. Such a problem is too complex to be fully embedded on any near-term quantum hardware or simulator; we avoid confronting this challenge by taking a hybrid workflow approach: we iteratively assign routes for trucks by generating a new binary optimization problem instance one truck at a time. Each instance has [Formula: see text] quadratic binary variables, putting it in a range that is feasible for NISQ quantum computing, especially quantum annealing hardware. We test our methods using simulated annealing and the D-Wave Hybrid solver as a place-holder in wait of quantum hardware developments. After feeding the vehicle routes suggested by these runs into a highly realistic classical supply chain simulation, we find excellent performance for the full supply chain. Our work gives a set of techniques that can be adopted in contexts beyond vehicle routing to apply NISQ devices in a hybrid fashion to large-scale problems of commercial interest.
Quantum computing offers transformative potential for addressing complex combinatorial optimization challenges in logistics and supply chain management. This paper presents a comprehensive investigation of quantum annealing and hybrid quantum-classical algorithms applied to unit load device (ULD) configuration and disruption management in air cargo and multimodal logistics networks. We formulate the ULD loading and placement problem as a Quadratic Unconstrained Binary Optimization (QUBO) model that incorporates weight, volume, center-of-gravity, structural stress, and compatibility constraints. A stratified hybrid architecture spanning physical quantum hardware, algorithmic middleware, and decision-support layers is proposed. Through extensive numerical experiments and comparison with classical solvers, we demonstrate superior payload utilization (up to 96.5%), favorable computational scaling, and rapid disruption recovery. Real-world industry pilots, including quantum-assisted route optimization achieving substantial carbon emission reductions and hybrid solutions at major ports, are analyzed. Results indicate that while noisy intermediate-scale quantum (NISQ) hardware limitations persist, hybrid approaches already deliver measurable gains in operational efficiency, cost reduction, and supply-chain resilience. The work provides a practical roadmap for near-term adoption of quantum technologies in high-stakes logistics environments. Keywords— Quantum annealing, Unit load device (ULD), QUBO, Logistics optimization, Disruption management, Hybrid quantum-classical algorithms, Air cargo, Supply chain resilience
Supply chain and logistics operations involve combinatorial optimisation problems -- vehicle routing, warehouse assignment, inventory scheduling, and network flow -- whose complexity scales exponentially with problem size, making exact classical solvers impractical for real-world instances. Quantum optimisation algorithms offer potential speedups through quantum parallelism and interference. This paper proposes the Quantum Supply Chain Optimisation Framework (QSCOF), evaluating QAOA, VQE, and quantum annealing across five canonical logistics problems on NISQ hardware and fault-tolerant models. Evaluated on 20 benchmark instances spanning 20-200 nodes, QSCOF demonstrates QAOA achieving 93.8% solution quality for 50-node vehicle routing on current hardware, quantum annealing delivering 28x speedup for 100-node warehouse assignment, and a Quantum Logistics Utility Index (QLUI) of 0.871. Quantum advantage thresholds and a phased adoption roadmap are provided.
Quantum computing offers transformative potential for addressing complex optimization challenges in logistics and supply chain management.This paper explores the practical applications of quantum annealing and hybrid quantum-classical algorithms within a stratified architecture spanning physical hardware, algorithmic middleware, and decision-support layers.We demonstrate how these technologies enable significant improvements in unit load device (ULD) and pallet configuration, dynamic routing under disruption, and real-time multi-objective optimization.Through analysis of real-world industry pilots, including DHL's quantum-assisted route optimization achieving substantial carbon emission reductions, Volkswagen's fleet efficiency improvements, and hybrid quantum solutions at major ports such as the Port of Los Angeles, we show measurable gains in operational efficiency, cost reduction, payload utilization, and supply chain resilience.The study integrates these advancements with established resilience frameworks and the author's prior contributions in supply chain resilience, automotive battery technologies, and intelligent transportation systems.While hardware limitations in the noisy intermediate-scale quantum (NISQ) era persist, hybrid approaches provide a viable pathway for near-term adoption.This work highlights the transition of quantum technologies from theoretical promise to practical deployment, offering a roadmap for more efficient, resilient, and sustainable global supply chains.Future directions include scaling hybrid systems and expanding applications across multi-modal logistics networks
Background: This paper investigates hybrid quantum–classical optimization approaches for addressing core supply chain management (SCM) problems. A unified hybrid framework is implemented and evaluated across five representative domains: vehicle routing, scheduling, facility location, inventory optimization, and demand forecasting. Methods: The framework integrates quantum algorithms—namely the Quantum Approximate Optimization Algorithm (QAOA), Quantum Annealing (QA), and the Variational Quantum Eigensolver (VQE)—with classical constraint-handling and local refinement procedures in an iterative workflow. Quantum solvers are employed for global solution exploration, while classical optimization ensures feasibility and convergence stability. Results: Experiments conducted on standardized synthetic benchmarks demonstrate that the proposed hybrid framework consistently outperforms classical-only and quantum-only baselines, achieving 12–18% reductions in operational costs and 20–35% faster convergence. In routing and fulfilment tasks, quantum-generated candidate solutions provide effective warm starts for classical refinement. Robustness analysis based on stochastic SCM simulations further indicates lower performance variance under uncertainty. Conclusions: These results demonstrate that hybrid quantum–classical optimization constitutes a practical and scalable strategy for near-term SCM decision-making under current Noisy Intermediate-Scale Quantum (NISQ) hardware constraints.
Quantum computing (QC) stands at the cusp of revolutionizing computation, yet its near-term potential, constrained by Noisy Intermediate-Scale Quantum (NISQ) devices, remains underexplored. This dissertation investigates how hybrid quantum-classical algorithms can address combinatorial optimization challenges in logistics, focusing on vehicle routing and drone delivery—NP-hard problems with exponential solution spaces that defy classical exhaustive methods. Amidst NISQ limitations like limited qubits and high noise, we confront key challenges: encoding complex constraints, e.g., time windows, battery capacity, into quantum models, balancing quantum and classical components for scalability, and accessing scarce quantum resources. By integrating quantum annealing (QA) and the Quantum Approximate Optimization Algorithm (QAOA) with classical heuristics, this work demonstrates QC’s practical utility, advancing both optimization theory and real-world logistics applications. The dissertation unfolds across four core contributions. First, the Hybrid Quantum Tabu Search (HQTS) optimally solves the 50-location Capacitated Vehicle Routing Problem (CVRP), achieving a 4.72% optimality gap. Secondly, we refine HQTS to reach a 2.15% gap with enhanced QA utilization, outperforming prior hybrids on standard datasets. Third, adapting HQTS for the CVRPTWwith D-Wave’s Constrained Quadratic Model solver yields a 3.85% gap on 100-location instances, leveraging a novel heuristic to ensure time-window feasibility where quantum outputs falter. Lastly, QUADRO, a pioneering framework for drone delivery, employs QAOA-driven routing and hybrid scheduling, minimizing transit time and makespan for fleets of 2–11 drones needing fewer than 100 qubits, rivaling classical benchmarks on adapted Augerat datasets. These advances, tested via D-Wave’s Advantage system and Qiskit simulations, showcase hybrid strategies that mitigate NISQ constraints, delivering scalable, feasible solutions to logistics challenges. This work establishes near-term QC’s viability for combinatorial optimization, bridging theoretical promise with practical impact. Synthesizing quantum exploration with classical refinement achieves competitive performance, e.g., matching or surpassing Google ORTools in select CVRPTW cases, while illuminating NISQ limits, such as feasibility degradation beyond small scales. These hybrid strategies deliver scalable, feasible solutions, from a 2.15% optimality gap for CVRP to effective drone fleet management with fewer than 100 qubits, illuminating quantum computing’s potential despite its current constraints. Ultimately, this dissertation positions hybrid QC as a transformative tool for optimization challenges, offering a robust foundation for scaling quantum optimization into operational reality.
Quantum computing presents a transformative opportunity for optimizing supply chain and logistics operations by addressing complex combinatorial challenges beyond the capabilities of classical computing. Traditional supply chain optimization relies on heuristic and mathematical models, which struggle with large-scale problems such as vehicle routing, warehouse management, demand forecasting, and last-mile delivery. Quantum computing, leveraging qubits and principles like superposition and entanglement, enables exponential computational power and efficiency. This paper explores quantum computing's applications in logistics, including quantum annealing for route optimization, fleet management, and supply chain network design. Companies like IBM, Google, and D-Wave are advancing quantum algorithms, with hybrid quantum-classical approaches emerging as practical solutions. While large-scale commercial adoption is still in its infancy, research demonstrates promising results in reducing operational costs, improving sustainability, and enhancing decision-making. The study synthesizes over 80 published works on quantum computing's role in logistics, providing insights into emerging technologies, challenges, and future potential. As the field progresses, early adoption and pilot programs will be crucial for businesses to gain a competitive edge in an increasingly complex global supply chain landscape. Quantum computing has the potential to redefine efficiency, cost reduction, and real-time adaptability in logistics and supply chain management.