Quantum-Enhanced Simulation-Based Optimization for Newsvendor Problems

Fuente: arXiv
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Main Authors: Sharma, Monit, Lau, Hoong Chuin, Raymond, Rudy
Format: Preprint
Published: 2024
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author Sharma, Monit
Lau, Hoong Chuin
Raymond, Rudy
author_facet Sharma, Monit
Lau, Hoong Chuin
Raymond, Rudy
contents Simulation-based optimization is a widely used method to solve stochastic optimization problems. This method aims to identify an optimal solution by maximizing the expected value of the objective function. However, due to its computational complexity, the function cannot be accurately evaluated directly, hence it is estimated through simulation. Exploiting the enhanced efficiency of Quantum Amplitude Estimation (QAE) compared to classical Monte Carlo simulation, it frequently outpaces classical simulation-based optimization, resulting in notable performance enhancements in various scenarios. In this work, we make use of a quantum-enhanced algorithm for simulation-based optimization and apply it to solve a variant of the classical Newsvendor problem which is known to be NP-hard. Such problems provide the building block for supply chain management, particularly in inventory management and procurement optimization under risks and uncertainty
format Preprint
id arxiv_https___arxiv_org_abs_2403_17389
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Quantum-Enhanced Simulation-Based Optimization for Newsvendor Problems
Sharma, Monit
Lau, Hoong Chuin
Raymond, Rudy
Quantum Physics
Simulation-based optimization is a widely used method to solve stochastic optimization problems. This method aims to identify an optimal solution by maximizing the expected value of the objective function. However, due to its computational complexity, the function cannot be accurately evaluated directly, hence it is estimated through simulation. Exploiting the enhanced efficiency of Quantum Amplitude Estimation (QAE) compared to classical Monte Carlo simulation, it frequently outpaces classical simulation-based optimization, resulting in notable performance enhancements in various scenarios. In this work, we make use of a quantum-enhanced algorithm for simulation-based optimization and apply it to solve a variant of the classical Newsvendor problem which is known to be NP-hard. Such problems provide the building block for supply chain management, particularly in inventory management and procurement optimization under risks and uncertainty
title Quantum-Enhanced Simulation-Based Optimization for Newsvendor Problems
topic Quantum Physics
url https://arxiv.org/abs/2403.17389