Technology Foundation

QAOA for Discrete Logistics Decisions

Quantum Approximate Optimisation Algorithm applied to discrete logistics problems: vehicle routing, bin packing, and scheduling.

SKU clustering, demand segmentation, and calendar effect isolation as graph problems.

Farhi, Goldstone, and Gutmann (2014): the variational approach to combinatorial optimisation. Key areas include: QAOA circuit structure: alternating problem and mixer unitaries with variational parameter optimisation; MaxCut reduction: mapping logistics clustering and segmentation problems to graph partitioning on quantum hardware; Circuit depth versus solution quality: how many QAOA layers (p) are needed to approach optimal solutions for logistics-scale instances.

Three specific problem formulations for logistics operations. Key areas include: SKU clustering: partitioning product portfolios by demand similarity, margin contribution, and replenishment frequency as a weighted graph cut; Demand segmentation: identifying customer groups with distinct ordering patterns for differentiated service level policies; Calendar effect isolation: separating promotional uplift from seasonal baseline and holiday effects using binary assignment formulations.

Running QAOA on a logistics clustering problem. Key areas include: Formulating a 50-SKU clustering problem as MaxCut using Qiskit QAOA with p=3 layers on a 20-qubit simulator; Comparing solution quality against spectral clustering, k-means, and greedy graph partitioning on the same instance; Measuring how QAOA performance degrades as SKU count increases and circuit noise is added.

Where QAOA stands on current hardware and the path forward. Key areas include: Qubit connectivity constraints: sparse hardware topologies require SWAP gates that increase circuit depth beyond the algorithmic minimum; Parameter optimisation landscape: barren plateaus and local minima in QAOA variational training at moderate circuit depths; Classical competitors: simulated annealing and Goemans-Williamson often match or exceed QAOA quality for logistics-scale MaxCut instances on current hardware.

When QAOA becomes practical for logistics operations.

Q&A and Action Planning: this session covers the core principles and technical underpinnings relevant to the subject area.

Discuss this topic with senior peers.