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Variational Hybrid Quantum Algorithms Quantum Machine Learning Quantum Simulation

QR-SPPS: Quantum-Native Retail Supply Chain Risk Simulation via VQE, ADAPT-VQE Counterfactual Policy Ranking, and DOS-QPE Boltzmann Tail Risk Quantification

arXiv
Authors: Sumit Tapas Chongder

Year

2026

Paper ID

39131

Status

Preprint

Abstract Read

~2 min

Abstract Words

217

Citations

N/A

Abstract

Classical supply chain risk models treat node failures as statistically independent events, systematically underestimating cascade probabilities when supplier dependencies are strongly correlated. At n=40 nodes, the full correlated failure distribution requires O2n classical samples, a regime where exact simulation demands 17.6 TB of memory and over 369,000 hours of computation on a standard workstation. We present QR-SPPS (Quantum-Native Retail Shock Propagation and Policy Stress Simulator), a three-algorithm quantum pipeline implemented using the Qiskit framework with the Aer statevector_simulator backend. First, a 40-node, 4-tier retail supply network is encoded as a 40-qubit Ising Hamiltonian using OpenFermion QubitOperator, where ZZ coupling terms encode correlated cascade probabilities structurally absent from classical Monte Carlo. Second, a hardware-efficient VQE circuit finds the ground-state stress distribution with zero error, detecting entangled cascade failures in 14/40 nodes with max|ΔP|=0.637 versus classical Monte Carlo. Third, we introduce the first application of ADAPT-VQE gradient screening to counterfactual macroeconomic policy evaluation: six crisis interventions are ranked in O(1) Qiskit operator evaluations per policy, a 287x speedup over sequential VQE re-optimisation. Fourth, Density-of-States QPE (DOS-QPE) reconstructs the full eigenspectrum via 32-step Trotter evolution and introduces a novel mapping of the Boltzmann catastrophe probability P_cat(T) to VIX-equivalent market volatility temperature, enabling direct integration into regulatory Value-at-Risk frameworks. Qiskit Aer scaling benchmarks confirm exponential classical intractability at 40 qubits.

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  • Classical supply chain risk models treat node failures as statistically independent events, systematically underestimating cascade probabilities when supplier dependencies are...

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