NEROX/Supply Chain
Use Case

Supply Chain

Inventory placement, supplier selection, and demand allocation across multi-tier global supply networks.

Supply chain decisions as combinatorial problems

Supply chain planning involves discrete, interdependent decisions made under uncertainty: which suppliers to qualify, how much safety stock to hold at each node, which distribution centers to operate, and how to allocate constrained supply across competing demand signals. Each of these is a combinatorial optimization problem — and they interact across a network of hundreds or thousands of nodes.

Inventory placement optimization

Determine which nodes in a multi-echelon supply network should hold inventory to minimize total holding cost while meeting service level targets. Guaranteed service model as a QUBO.

Supplier selection & qualification

Select a portfolio of suppliers under cost, quality, geographic diversity, and capacity constraints. Multi-criteria supplier selection with binary allocation variables.

Demand allocation under supply constraints

Allocate constrained supply across markets, channels, and customers to maximize revenue or service level. Handles tiered priority, minimum order quantities, and regional restrictions.

Network resilience design

Design supply networks that remain feasible under disruption scenarios — single-source dependencies, geopolitical exposure, and natural disaster risk. Robust optimization with scenario-based QUBO.

Procurement auctions

Winner determination in combinatorial procurement auctions where suppliers bid on bundles of items. NP-hard winner determination solved as a QUBO.