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arXiv:2605.30252

Quantum optimization beyond QUBO for industrial logistics and scheduling

Juan F. R. Hernandez, Pavle Nikacevic, Enrique Solano, Chinonso Onah, Agneev Guin, Arne-Christian Voigt, Archismita Dalal

quant-phSubmitted May 28, 2026• Announced May 29, 2026• 0 citations
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Abstract

The increasing complexity of industrial scheduling and transport routing problems motivates the study of alternative optimization formulations and computational paradigms. In this work, we study how higher-order unconstrained binary optimization (HUBO) formulations of such problems map onto quantum optimization workflows in both noisy and fault-tolerant regimes. We consider three representative logistics and manufacturing use cases and formulate each as a HUBO problem. This captures process intricacies, such as highly correlated assembly-line scheduling rules, which are difficult to express faithfully with the standard quadratic (QUBO) form, while at the same time reducing the number of binary variables required in the quantum mapping, thus lowering qubit demand. We compare the HUBO formulations with corresponding QUBO encodings, highlighting a key trade-off: while HUBO reduces qubit requirements through compact binary encoding, it introduces higher-order interaction terms that increase circuit depth, limiting feasibility on current quantum hardware. The proposed formulations are validated using classical solvers across several problem instances and benchmark small routing problem instances using bias-field digitized counterdiabatic quantum optimization in classical simulation. We complement these results with a resource and scalability analysis, focusing on the capacitated vehicle routing problem as a representative large-scale industrial use case. Our analysis indicates that while HUBO formulations offer advantages in qubit scaling compared to QUBO encodings, their practical implementation is constrained by gate fidelity, coherence, and circuit depth, making hybrid quantum-classical workflows and early fault-tolerant quantum hardware the most plausible settings for their practical use.

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16 pages, 9 figures, 1 table

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The increasing complexity of industrial scheduling and transport routing problems motivates the study of alternative optimization formulations and computational paradigms. In this work, we study how higher-order unconstrained binary optimization (HUBO) formulations of such problems map onto quantum optimization workflows in both noisy and fault-tolerant regimes. We consider three representative logistics and manufacturing use cases and formulate each as a HUBO problem. This captures process intricacies, such as highly correlated assembly-line scheduling rules, which are difficult to express faithfully with the standard quadratic (QUBO) form, while at the same time reducing the number of binary variables required in the quantum mapping, thus lowering qubit demand. We compare the HUBO formulations with corresponding QUBO encodings, highlighting a key trade-off: while HUBO reduces qubit requirements through compact binary encoding, it introduces higher-order interaction terms that increase circuit depth, limiting feasibility on current quantum hardware. The proposed formulations are validated using classical solvers across several problem instances and benchmark small routing problem instances using bias-field digitized counterdiabatic quantum optimization in classical simulation. We complement these results with a resource and scalability analysis, focusing on the capacitated vehicle routing problem as a representative large-scale industrial use case. Our analysis indicates that while HUBO formulations offer advantages in qubit scaling compared to QUBO encodings, their practical implementation is constrained by gate fidelity, coherence, and circuit depth, making hybrid quantum-classical workflows and early fault-tolerant quantum hardware the most plausible settings for their practical use.
Quantum approaches to combinatorial optimization problems (COPs) are often limited by the resource demands of Quadratic Unconstrained Binary Optimization (QUBO) encodings, which enlarge circuits through penalty terms and increase qubit and gate counts. We show that Higher-Order Unconstrained Binary Optimization (HUBO) enables a more resource-efficient formulation. Our method systematically constructs HUBO Hamiltonians and, compared to a QUBO formulation in benchmarks on Gate Assignment (GAP), Maximum k-Colorable Subgraph (MkCS), and Integer Programming (IP) problems, significantly reduces qubit requirements and decreases total CNOT gate counts by at least 89.6% for all tested instances. These results highlight HUBO as a practical alternative for quantum optimization on near-term devices. To promote adoption, we release an open-source Python library that automates HUBO model construction, extends beyond the examples presented in this work, and broadens access to resource-efficient quantum optimization.
Abstract Combinatorial optimization plays a crucial role in many industrial applications. While classical computing often struggles with complex instances, quantum optimization emerges as a promising alternative. Here, we present an enhanced bias-field digitized counterdiabatic quantum optimization (BF-DCQO) algorithm to address higher-order unconstrained binary optimization (HUBO). We apply BF-DCQO to a HUBO problem featuring three-local terms in the Ising spin-glass model, validated experimentally using 156 qubits on an IBM quantum processor. In the studied instances, our results outperform standard methods such as the quantum approximate optimization algorithm, quantum annealing, simulated annealing, and Tabu search. Furthermore, we provide numerical evidence of the feasibility of a similar HUBO problem on a 433-qubit Osprey-like quantum processor. Finally, we solve denser instances of the MAX 3-SAT problem in an IonQ emulator. Our results show that BF-DCQO offers an effective path for solving large-scale HUBO problems on current and near-term quantum processors.
Large-scale combinatorial scheduling problems -- job-shop scheduling, flow-shop scheduling, and vehicle routing among them -- remain NP-hard at practically relevant scale, and quantum computing has entered this space along two related tracks: genuinely quantum solvers, principally quantum annealers and gate-based devices running the quantum approximate optimization algorithm (QAOA), and quantum-inspired classical solvers, such as coherent Ising machines and digital annealers, that borrow the same Ising/QUBO problem structure without requiring quantum hardware. This article synthesizes both tracks as applied specifically to scheduling. We trace the theoretical foundations from quantum and simulated annealing through the QUBO formulation techniques that make scheduling problems solver-ready, then review direct applications to job-shop, flow-shop, and vehicle-routing problems, reporting the concrete, verified numbers the underlying studies provide. The consistent finding is that quantum hardware remains constrained by qubit connectivity, embedding overhead, and shallow achievable circuit depth to small benchmark instances, while quantum-inspired classical solvers, unconstrained by qubit count, already reach scheduling-relevant problem sizes with reported performance competitive with or exceeding classical heuristics. We close by identifying benchmarking rigor, hardware connectivity, and the near-total absence of work on dynamic, online scheduling as the field's clearest open problems.
Large-scale combinatorial scheduling problems -- job-shop scheduling, flow-shop scheduling, and vehicle routing among them-- remain NP-hard at practically relevant scale, and quantum computing has entered this space along two related tracks:genuinely quantum solvers, principally quantum annealers and gate-based devices running the quantum approximateoptimization algorithm (QAOA), and quantum-inspired classical solvers, such as coherent Ising machines and digitalannealers, that borrow the same Ising/QUBO problem structure without requiring quantum hardware. This article synthesizesboth tracks as applied specifically to scheduling. We trace the theoretical foundations from quantum and simulated annealingthrough the QUBO formulation techniques that make scheduling problems solver-ready, then review direct applications tojob-shop, flow-shop, and vehicle-routing problems, reporting the concrete, verified numbers the underlying studies provide. Theconsistent finding is that quantum hardware remains constrained by qubit connectivity, embedding overhead, and shallowachievable circuit depth to small benchmark instances, while quantum-inspired classical solvers, unconstrained by qubitcount, already reach scheduling-relevant problem sizes with reported performance competitive with or exceeding classicalheuristics. We close by identifying benchmarking rigor, hardware connectivity, and the near-total absence of work on dynamic,online scheduling as the field's clearest open problems.
E-commerce platforms face ever more complex dimensional SKU portfolios, demand volatility, returns, seasonality and cost pressures. Traditional optimization approaches (integer programming, heuristics, meta-heuristics) increasingly strain under scale, real-time demands and combinatorial explosion. Meanwhile, quantum-inspired optimization leveraging methods such as quantum annealing, coherent Ising machines, variational circuits and QUBO (Quadratic Unconstrained Binary Optimization) mapping offer near-term practical approaches to combinatorial logistics and inventory problems. This paper proposes a comprehensive framework for applying quantum-inspired optimization to e-commerce supply-chain logistics and inventory management: we provide an extended literature review of classical and quantum-inspired methods; we derive full mathematical formulations for logistics/inventory problems and map them into QUBO/quantum-inspired frameworks; we design a benchmarking/implementation methodology; we discuss industry architecture and deployment issues (data pipelines, latency, hybrid classical/quantum-inspired workflows, interpretability, cost benefit); we present use cases and discuss practical adoption in ecommerce. Our findings suggest that while fully fault-tolerant quantum computing remains some years away, quantum-inspired optimization can deliver meaningful improvements in logistics and inventory decisions today, particularly for large-SKU e-commerce, multi-warehouse networks and time-sensitive delivery.
This article explores the comparative strengths of Higher-Order Unconstrained Binary Optimization (HUBO) and Quadratic Unconstrained Binary Optimization (QUBO) models in the context of probability optimization using tensor sampling techniques. HUBO can represent interactions beyond pairwise terms without introducing auxiliary variables, while QUBO benefits from a simpler algebraic structure and a wide range of established solvers. We combine a theoretical analysis of formulation expressiveness and reduction overhead with empirical experiments on synthetic polynomial objectives, RSA factorization, and Max-Cut instances. The results show that native HUBO formulations are often preferable when the original problem contains high-order interactions, because reducing such problems to QUBO increases the effective dimension seen by tensor samplers. At the same time, QUBO remains competitive for naturally quadratic problems. These findings provide practical guidance for selecting an optimization framework that balances model fidelity, dimension growth, and solver performance.