CHOOSE
Defense Supply Chain and Resource Allocation
Optimize multi-tier defense supply chains and tactical resource allocation across distributed operations, managing 200,000+ suppliers while maximizing readiness and minimizing costs in contested environments.
Understanding the Problem
Defense supply chains involve complex global networks of over 200,000 suppliers producing weapons systems, critical materials, and support equipment. These chains must meet stringent reliability requirements, security constraints, and operational readiness demands while managing risks from geopolitical dependencies, counterfeit components, and supply disruptions. The DoD manages inventory valued at over $90 billion. Over 1 million counterfeit electronic parts have been found in military systems, including critical F-35 components.
THE CHALLENGE
What Makes it Hard
Defense organizations must source critical materials from a vast supplier network while preventing counterfeit infiltration, managing foreign dependencies, ensuring ITAR compliance, and positioning inventory across multi-echelon networks for rapid operational response.
WHO FACES IT
Over 1 million counterfeit parts found in military systems with violations carrying up to $1M fines per incident
Single components often support multiple weapon systems, creating cascading risks from single points of failure
Balancing frontline depots focused on rapid replenishment against strategic depots for long-term stockpiling
BUSINESS IMPACT
Optimize $210B+ in defense logistics: reduce order-ship times by 75% (18 days to 5) and cut distribution costs by 25%.
Mission success depends on having the right materials at the right place and time.
Order-and-Ship Time
50%
Reduction[1]
The Army's Velocity Management initiative reduced order-and-ship times for repair parts by approximately 50% system-wide, with some major installations achieving even greater improvements.
Distribution Costs
25%
Reduction[2]
Since FY2011, the Defense Logistics Agency reduced costs for distribution services by 25% through infrastructure optimization.
Logistics Spending
$210B+
Annual Budget[3]
DoD estimated overall spending on logistics, including supply chain management, at more than $210 billion in fiscal year 2010.
How We Solve It
Large-scale MILP for multi-echelon supply chain network design. Decision variables cover facility location, supplier selection across multiple tiers, product flows through echelons, inventory positioning, and contingency sourcing plans. Stochastic programming extensions handle demand uncertainty and supply disruptions.
Hybrid Compute
What We Bring
Multi-tier supplier selection with security clearance and reliability scoring
Multi-echelon inventory positioning balancing readiness versus carrying costs
Contingency sourcing for alternate supplier activation under disruptions
ITAR compliance validation across supplier-product assignments
FUTURE POSSIBILITIES
The
Quantum Horizon
D-Wave's Advantage2 (4,400+ qubits) is now operational at Davidson Technologies for U.S. defense applications. Active exploration includes military logistics optimization and transportation routing. D-Wave achieved 'Awardable' vendor status for DoD's Tradewinds marketplace.
Exploratory Work
Quantum annealing may provide speedups for specific tactical logistics subproblems (routing, resource allocation) within 2-3 years. Full defense supply chain optimization with millions of variables and complex constraints still favors classical MILP. Quantum-inspired algorithms offer the most practical near-term path.
Current Research Directions
D-Wave defense applications for logistics optimization and resource deployment
Cargo loading optimization at Port of Los Angeles using quantum annealing
Autonomous vehicle resupply for Australia's Department of Defence
Interested in quantum research?
Explore proof-of-concept implementations with our team.
Ready to solve this problem?
Talk to our experts about how Strangeworks can help with defense supply chain and resource allocation.
SOURCES