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International Journal of Enterprise Modelling

Quantum computing for manufacturing and supply chain optimization: enhancing efficiency, reducing costs, and improving product quality

Weinberg Jiang Chen, Griffin Schworm Marcus, D'Souza Leesburg

Published Sep 30, 2021• 13 citations
Publisher

Abstract

The research explores the application of quantum computing to manufacturing and supply chain optimization in an effort to increase productivity, reduce costs, and improve product quality. Quantum algorithms, specifically the Quantum Approximate Optimization Algorithm (QAOA), are developed and evaluated to solve complex optimization problems in these domains. Quantum computing approaches are contrasted with traditional optimization techniques to demonstrate the potential advantages of quantum algorithms in terms of solution quality and working time efficiency. Practical implementation considerations of data availability, algorithm scalability, and system integration are also discussed. This research shows that quantum algorithms can effectively optimize production scheduling, resource allocation, and supply chain management, resulting in shorter production schedules and improved operational performance. This research recognizes the limitations of current quantum hardware, the complexity of the problem domain, and the difficulty of implementation. Despite these limitations, this research lays the foundation for further investigation and innovation in quantum computing for manufacturing and supply chain optimization, highlighting the potential for long-term transformative effects on industrial operations.

DOI
10.35335/emod.v15i3.48

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Quantum computing leverages the principles of quantum mechanics to process information in ways that classical computers cannot. This capability is particularly advantageous for solving complex optimization problems that are common in supply chain management. Quantum algorithms, such as the quantum approximate optimization algorithm (QAOA) and quantum annealing, have shown promise in efficiently solving these problems by exploring numerous potential solutions simultaneously and identifying optimal strategies. The purpose of this chapter is to investigate the rapidly developing topic of quantum computing and its potential applications in managing sustainable resources within supply chains. Traditional resource allocation methods often struggle to maximize efficiency while minimizing environmental impact. However, new developments in quantum computing have opened up potentially fruitful pathways for addressing these issues. This study aims to explore how quantum computing can revolutionize through an examination of quantum algorithms, optimization approaches, and case studies.
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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.