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Quadratic Unconstrained Binary Optimization (QUBO) problems are NP-hard problems and many real-world problems can be formulated as QUBO. Currently there are no algorithms known that can solve arbitrary instances of NP-hard problems…

Quantum Physics · Physics 2023-12-20 Christian Münch , Fritz Schinkel , Sebastian Zielinski , Stefan Walter

The quadratic unconstrained binary optimization (QUBO) problem arises in diverse optimization applications ranging from Ising spin problems to classical problems in graph theory and binary discrete optimization. The use of preprocessing to…

Artificial Intelligence · Computer Science 2017-05-29 Fred Glover , Mark Lewis , Gary Kochenberger

The 2008 mortgage crisis is an example of an extreme event. Extreme value theory tries to estimate such tail risks. Modern finance practitioners prefer Expected Shortfall based risk metrics (which capture tail risk) over traditional…

Risk Management · Quantitative Finance 2020-09-16 Samudra Dasgupta , Arnab Banerjee

Quantum computing and modern tensor-based computing have a strong connection, which is especially demonstrated by simulating quantum computations with tensor networks. The other direction is less studied: quantum computing is not often…

Quantum Physics · Physics 2025-09-03 Valter Uotila

As consequences of disruptions in railway traffic affect passenger experience/satisfaction, appropriate rerouting and/or rescheduling is necessary. These problems are known to be NP-hard, given the numerous restrictions of traffic nature.…

Emerging Technologies · Computer Science 2022-10-06 Krzysztof Domino , Akash Kundu , Özlem Salehi , Krzysztof Krawiec

We present a classical algorithm to find approximate solutions to instances of quadratic unconstrained binary optimisation. The algorithm can be seen as an analogue of quantum annealing under the restriction of a product state space, where…

Quantum Physics · Physics 2023-02-14 Joseph Bowles , Alexandre Dauphin , Patrick Huembeli , José Martinez , Antonio Acín

A key problem in financial mathematics is the forecasting of financial crashes: if we perturb asset prices, will financial institutions fail on a massive scale? This was recently shown to be a computationally intractable (NP-hard) problem.…

General Finance · Quantitative Finance 2019-07-03 Roman Orus , Samuel Mugel , Enrique Lizaso

This paper proposes a hybrid quantum-classical algorithm to solve a fundamental power system problem called unit commitment (UC). The UC problem is decomposed into a quadratic subproblem, a quadratic unconstrained binary optimization (QUBO)…

Quantum Physics · Physics 2022-04-19 Reza Mahroo , Amin Kargarian

A challenge for scalability of demand-responsive, elastic optical Dense Wavelength Division Multiplexing (DWDM) and Flexgrid networks is the computational complexity of allocating many optical routes on large networks. We demonstrate that…

Networking and Internet Architecture · Computer Science 2024-02-13 Ethan Davies , Darren Banfield , Vlad Carare , Ben Weaver , Catherine White , Nigel Walker

Quantum Annealing (QA) can efficiently solve combinatorial optimization problems whose objective functions are represented by Quadratic Unconstrained Binary Optimization (QUBO) formulations. For broader applicability of QA, quadratization…

Quantum Physics · Physics 2025-07-29 Hyakka Nakada , Shu Tanaka

Quantum annealers can solve QUBO problems efficiently but struggle with continuous optimization tasks like regression due to their discrete nature. We introduce Quadratic Continuous Quantum Optimization (QCQO), an anytime algorithm that…

Quantum Physics · Physics 2026-01-01 Sascha Mücke , Thore Gerlach , Nico Piatkowski

A black-box optimization algorithm such as Bayesian optimization finds extremum of an unknown function by alternating inference of the underlying function and optimization of an acquisition function. In a high-dimensional space, such…

Quantum Physics · Physics 2021-05-03 Syun Izawa , Koki Kitai , Shu Tanaka , Ryo Tamura , Koji Tsuda

Quantum annealing is a powerful tool for solving and approximating combinatorial optimization problems such as graph partitioning, community detection, centrality, routing problems, and more. In this paper we explore the use of quantum…

Quantum Physics · Physics 2025-07-17 Joel E. Pion , Susan M. Mniszewski

Quantum annealers provide an effective framework for solving large-scale combinatorial optimization problems. This work presents a novel methodology for training Variational Quantum Algorithms (VQAs) by reformulating the parameter…

Quantum Physics · Physics 2025-09-03 Ernesto Acosta , Guillermo Botella , Carlos Cano

Optimizing objective functions stands to benefit significantly from leveraging quantum computers, promising enhanced solution quality across various application domains in the future. However, harnessing the potential of quantum solvers…

Quantum Physics · Physics 2025-10-15 Deborah Volpe , Nils Quetschlich , Mariagrazia Graziano , Giovanna Turvani , Robert Wille

In finance, assessing the creditworthiness of loan applicants requires lenders to cluster borrowers using rating scales. Financial institutions must define the scales in compliance with strict institutional constraints, resulting in solving…

We introduce two quantum algorithms for solving structured prediction problems. We first show that a stochastic gradient descent that uses the quantum minimum finding algorithm and takes its probabilistic failure into account solves the…

Machine Learning · Computer Science 2021-07-05 Behrooz Sepehry , Ehsan Iranmanesh , Michael P. Friedlander , Pooya Ronagh

Using Quantum Computers to solve problems in Recommender Systems that classical computers cannot address is a worthwhile research topic. In this paper, we use Quantum Annealers to address the feature selection problem in recommendation…

Information Retrieval · Computer Science 2024-07-04 Jiayang Niu , Jie Li , Ke Deng , Yongli Ren

Quantum annealing offers a promising paradigm for solving NP-hard combinatorial optimization problems, but its practical application is severely hindered by two challenges: the complex, manual process of translating problem descriptions…

Machine Learning · Computer Science 2025-09-03 Huixiang Zhang , Mahzabeen Emu , Salimur Choudhury

In this note, we describe an experiment on portfolio optimization using the Quadratic Unconstrained Binary Optimization (QUBO) formulation. The dataset we use is taken from a real-world problem for which a classical solution is currently…