MRIO-QAOA: A Quantum-Enhanced Framework for Optimisation of Sustainable Supply Chain Management
By Avni, Megan
The rapid growth of global trade, outpacing real-adjusted GDP, has amplified the environmental footprint of international value chains, a prominent trend in recent decades that has been ineffectively addressed due to the complexity of global supply chains and discrepancies in sustainable policy. To inform sustainable policy-making, we integrate quantum computing and econometrics in a novel framework, leveraging usage of a Multi-Regional Input-Ouput (MRIO) model to quantify embodied CO2-emissions across global supply chains and model intersectoral relations across regions. Our approach builds upon the quantum-inspired notion of complex network optimisation, drawing from principles of the Quantum Approximate Optimisation Algorithm (QAOA) to simulate and optimise environmental policy interventions in an MRIO model. Within this simulated pseudo-economy, we provide a higher dimension of scenario analysis to evaluate the environmental impacts of global trade interventions. This paper ultimately seeks to provide empirical support for global policies to push for the sustainable management of supply chains, as well as contributing to the emerging paradigm of quantum economics.
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