We present a novel slack-free, penalty-based framework for reformulating constrained binary optimization as Quadratic Unconstrained Binary Optimization (QUBO) on near-term quantum annealing hardware. Given a user-chosen penalty function that most naturally captures a constraint---typically non-quadratic, such as a Heaviside-function surrogate---and a target probability measure over the Boolean hypercube, our method returns the weighted least-squares projection of the chosen penalty function onto the subspace spanned by linear and quadratic Walsh--Fourier characters that correspond to physically realizable couplings on the target hardware graph. Within this restricted family, the resulting quadratic surrogate is uniquely and optimally determined by the normal equations: unlike state-of-the-art approaches, it introduces no per-constraint penalty coefficients to tune and avoids dense all-pairs couplings by construction. Two practical consequences follow. First, the projected penalty respects device connectivity, reducing chain lengths and physical-qubit overhead after minor embedding. Second, we show empirically that this hardware-native surrogate can outperform denser full-pairwise projections, despite being drawn from a strictly smaller approximation space. This advantage widens once the QUBO is embedded and sampled on quantum annealers, yielding samples with the lowest worst-case and mean objective gaps compared to unbalanced penalization and a hardware-blind projection onto all quadratic terms.
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11 pages, 9 figures, 3 tables. Accepted at the IEEE International Conference on Quantum Computing and Engineering (QCE 2026). Code: https://github.com/lklee9/topology-aware-walsh-fourier-penalization
We present a novel slack-free, penalty-based framework for reformulating constrained binary optimization as Quadratic Unconstrained Binary Optimization (QUBO) on near-term quantum annealing hardware. Given a user-chosen penalty function that most naturally captures a constraint---typically non-quadratic, such as a Heaviside-function surrogate---and a target probability measure over the Boolean hypercube, our method returns the weighted least-squares projection of the chosen penalty function onto the subspace spanned by linear and quadratic Walsh--Fourier characters that correspond to physically realizable couplings on the target hardware graph. Within this restricted family, the resulting quadratic surrogate is uniquely and optimally determined by the normal equations: unlike state-of-the-art approaches, it introduces no per-constraint penalty coefficients to tune and avoids dense all-pairs couplings by construction. Two practical consequences follow. First, the projected penalty respects device connectivity, reducing chain lengths and physical-qubit overhead after minor embedding. Second, we show empirically that this hardware-native surrogate can outperform denser full-pairwise projections, despite being drawn from a strictly smaller approximation space. This advantage widens once the QUBO is embedded and sampled on quantum annealers, yielding samples with the lowest worst-case and mean objective gaps compared to unbalanced penalization and a hardware-blind projection onto all quadratic terms.
Quantum annealers such as the D-Wave 2X computer are designed to natively solve Quadratic Unconstrained Binary Optimization (QUBO) problems to optimality or near optimality. Most NP-hard problems, which are hard for classical computers, can be naturally described as quadratic binary problems that contain a quadratic binary objective function and one or more constraints. Since a QUBO cannot have constraints, each such constraint has to be added to the objective function as a penalty, in order to solve on D-Wave. For a minimization problem, for instance, such penalty can be a quadratic term that gets a value zero, if the constraint is satisfied, and a large value, if it is not. In many cases, however, the penalty can significantly increase the number of quadratic terms in the resulting QUBO and make it too large to embed into the D-Wave hardware. In this paper, we develop an alternative method for formulating and embedding constraints of the type Σi=1sxi=1, which is much more scalable than the existing ones, and analyze the properties of the resulting embeddings.
Resource constrained project scheduling and related allocation tasks can be expressed as Quadratic Unconstrained Binary Optimization (QUBO) models and submitted to quantum annealers. This paper develops the QUBO formulation in detail: choice of binary variables, linear and quadratic objective terms, conversion of precedence and resource constraints into penalty functions, and calibration of penalty weights. The resulting Hamiltonian is embedded onto quantum hardware, annealed, and post-processed. Hybrid classical–quantum workflows that wrap the QUBO solver inside Monte Carlo risk analysis or a digital twin are examined. Supporting process flowcharts and energy-landscape figures illustrate every stage. The treatment remains grounded in construction and logistics applications while remaining transferable to other combinatorial domains such as ULD configuration. Keywords: QUBO formulation; quantum annealing; Ising model; penalty methods; resource-constrained project scheduling; hybrid quantum-classical; minor embedding; Monte Carlo; digital twin.
Recent advancements in quantum computing have demonstrated significant potential for solving combinatorial optimization problems, like the quadratic knapsack problem, a constrained binary optimization problem. However, current quantum and quantum-inspired algorithms often require transforming these constrained problems into an unconstrained form, known as Quadratic Unconstrained Binary Optimization (QUBO). Such transformations can significantly impact the algorithms’ speed and efficiency. In this study, we evaluate five existing transformation methods and propose four novel approaches. We assess all nine methods using Simulated Annealing and find that three of our approaches outperform existing methods in terms of execution time and the quality and quantity of feasible solutions found. Additionally, we tested these transformations on quantum annealers, which were unable to solve even small problem instances, due to limitations in connectivity and error rates. However, our results highlight the advantages of the new approaches, which reduce the total number of variables in the QUBO representation. This is a critical factor for enhanced performance on emerging quantum hardware, since it also reduces the required number of qubits and the embedding chain lengths.
Recent advancements in quantum computing have demonstrated significant potential for solving combinatorial optimization problems, like the quadratic knapsack problem, a constrained binary optimization problem. However, current quantum and quantum-inspired algorithms often require transforming these constrained problems into an unconstrained form, known as Quadratic Unconstrained Binary Optimization (QUBO). Such transformations can significantly impact the algorithms’ speed and efficiency. In this study, we evaluate five existing transformation methods and propose four novel approaches. We assess all nine methods using Simulated Annealing and find that three of our approaches outperform existing methods in terms of execution time and the quality and quantity of feasible solutions found. Additionally, we tested these transformations on quantum annealers, which were unable to solve even small problem instances, due to limitations in connectivity and error rates. However, our results highlight the advantages of the new approaches, which reduce the total number of variables in the QUBO representation. This is a critical factor for enhanced performance on emerging quantum hardware, since it also reduces the required number of qubits and the embedding chain lengths.
Cardinality-constrained portfolio selection is routinely cast as a quadratic unconstrained binary optimization (QUBO) and submitted to a quantum processing unit (QPU) for direct annealing. We show that this standard penalty encoding is the binding constraint for direct-QPU execution on current D-Wave Pegasus and Zephyr hardware. Expanding the exact cardinality penalty contributes a dense rank-one term that makes the logical interaction graph complete regardless of the covariance, producing chain-break fractions from 83% at small universes up to 92% at the full forty-nine-industry Fama--French universe, and zero feasible raw samples at every tested scale. Topology-aware sparsification reduces chain breaks to near zero, but any sparsifier that removes off-diagonal entries also dilutes the cardinality constraint; an ablation reveals that this sparsify-and-project pipeline is dominated by the classical projector, not the QPU. We propose removing the penalty entirely: sample an objective-only QUBO built from expected returns and the risk-scaled covariance on hardware, and enforce cardinality classically through a deterministic feasibility projector. Across 4,468 saved embedding records on live Pegasus and Zephyr hardware, spanning equities up to forty-nine assets and football-betting instances up to forty-eight, this penalty-free pipeline reduces mean chain-break fractions from 71%--92% down to at most 0.04%, and post-processed regret is at most 0.03% relative to greedy classical references at every tested scale. We do not claim quantum advantage; the penalty encoding, not the sparse hardware topology, is the limiting factor for direct-QPU portfolio optimization at currently accessible scales.
Recent advancements in quantum computing have demonstrated significant potential for solving combinatorial optimization problems, like the quadratic knapsack problem, a constrained binary optimization problem. How- ever, current quantum and quantum-inspired algorithms often require transforming these constrained problems into an unconstrained form, known as Quadratic Unconstrained Binary Optimization (QUBO). Such transfor- mations can significantly impact the algorithms’ speed and efficiency. In this study, we evaluate five existing transformation methods and propose four novel approaches. We assess all nine methods using Simulated An- nealing and find that three of our approaches outperform existing methods in terms of execution time and the quality and quantity of feasible solutions found. Additionally, we tested these transformations on quantum annealers, which were unable to solve even small problem instances, due to limitations in connectivity and error rates. However, our results highlight the advantages of the new approaches, which reduce the total num- ber of variables in the QUBO representation. This is a critical factor for enhanced performance on emerging quantum hardware, since it also reduces the required number of qubits and the embedding chain lengths.