Technology Foundation

Variational Quantum Circuits for Probabilistic Forecasting

VQC architectures for probabilistic demand and supply forecasting in logistics operations.

Why logistics needs probabilistic demand distributions, not single numbers.

Parameterised circuits as probabilistic distribution generators. Key areas include: VQC structure: data encoding layers, parameterised rotation gates, entangling layers, and measurement-based output; Born machine interpretation: VQC measurement statistics as probability distributions over demand outcomes; Expressibility versus trainability: how circuit ansatz design affects the distributions a VQC can represent (Sim et al. 2019).

SKU-level, channel-level, and daily granularity probabilistic models. Key areas include: SKU-level demand distributions: generating full probability distributions for safety stock and service level calculations; Channel-level forecasting: capturing online versus offline demand patterns and their cross-channel correlations; Daily granularity: modelling intra-week and intra-month demand variation for workforce and delivery planning.

Training a VQC for probabilistic demand forecasting. Key areas include: Building a 10-qubit VQC using PennyLane with hardware-efficient ansatz for a 50-SKU demand dataset; Training via MMD (maximum mean discrepancy) loss to match empirical demand distributions; Comparing output quality against quantile regression, DeepAR, and Gaussian process baselines on CRPS metric.

Barren plateaus, noise, and what limits VQC forecasting today. Key areas include: Barren plateau problem: Cerezo et al. (2021) results showing gradient vanishing in deep parameterised circuits and practical mitigation strategies; Noise impact on output distributions: how NISQ device errors corrupt probability estimates and when error mitigation helps; Classical alternatives with equivalent expressibility: normalising flows and VAEs that produce probabilistic forecasts without quantum hardware.

Connecting VQC research to production forecasting pipelines.

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.