Quantum Optimization Techniques for Supply Chain and Logistics

Abstract

Supply chain and logistics operations involve combinatorial optimisation problems -- vehicle routing, warehouse assignment, inventory scheduling, and network flow -- whose complexity scales exponentially with problem size, making exact classical solvers impractical for real-world instances. Quantum optimisation algorithms offer potential speedups through quantum parallelism and interference. This paper proposes the Quantum Supply Chain Optimisation Framework (QSCOF), evaluating QAOA, VQE, and quantum annealing across five canonical logistics problems on NISQ hardware and fault-tolerant models. Evaluated on 20 benchmark instances spanning 20-200 nodes, QSCOF demonstrates QAOA achieving 93.8% solution quality for 50-node vehicle routing on current hardware, quantum annealing delivering 28x speedup for 100-node warehouse assignment, and a Quantum Logistics Utility Index (QLUI) of 0.871. Quantum advantage thresholds and a phased adoption roadmap are provided.