🔧 Optimization Parameters

%

📐 QUBO Formulation

min xTQx

The inventory problem is encoded as a Quadratic Unconstrained Binary Optimization:

Holding CostΣ h·q·2iCost of storing excess inventory
Ordering CostK · δ(q > 0)Fixed cost per order placed
Stockout Costp · max(0, D - I)Penalty for unmet demand
Constraintλ(Σ xi·2i - Q*)2Service level penalty term

⚡ QAOA Circuit

|ψ(γ,β)⟩ = UMp)UCp)...|+⟩⊗n
🎯

Cost Unitary

UC(γ) = e-iγC applies problem structure

🔄

Mixer Unitary

UM(β) = e-iβB explores solution space

📊

Measurement

Sample bit-strings, decode to order quantities

📈 QAOA Convergence

🌊 QUBO Energy Landscape

🔬 Solver Comparison

Solver Energy Solution Time Why This Works
🎯 Exact (Brute Force) -42.50 Q=85 12.4s Guaranteed optimal, O(2n) complexity
⚛️ QAOA (p=3) -42.31 Q=83 1.8s Variational quantum eigensolver approximation
🔥 Simulated Annealing -41.82 Q=81 0.3s Metropolis criterion escapes local minima
📋 Tabu Search -40.15 Q=78 0.2s Memory-based search avoids revisiting
🎲 Random Search -38.52 Q=72 0.1s Baseline - no intelligent exploration

✅ Optimal Decision

85Order Quantity
127Reorder Point
$2,340Total Cost
96.2%Service Level