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Nestlé is a global food and beverage company with products spanning nutrition, coffee, confectionery, pet care, and health science.
This challenge is inspired by Nestlé IT Innovation’s work on quantum computing for business-relevant optimization problems. It focuses on Distributed Order Management, or DOM: deciding how customer orders should be fulfilled across a network of distribution centers.
Quantum Optimization for Distributed Order Management
<summer program project phase>
Nestlé Challenge
The Challenge
Design, implement, and evaluate a solver for a Distributed Order Management problem.
When a default distribution center cannot fully satisfy an order, the system must determine whether the order should be reassigned to another center. Teams must account for:
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Inventory
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Throughput
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Labor or dock capacity
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Shipping cost
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Sales or fulfillment value
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Penalties for unmet demand
Each order may be assigned to no more than one distribution center. The final recommendation should explain not only which assignment is best, but why it improves on the baseline and what trade-offs it introduces.
Key Project Tasks
1. Business and Technical Summary
Prepare a concise two-page summary explaining:
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Distributed Order Management
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Why it is a combinatorial optimization problem
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Why advanced optimization methods are relevant
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Trade-offs between solution quality and runtime
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Exact methods versus heuristics
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Hardware versus simulator constraints
2. Data Understanding and Classical Baselines
Teams should:
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Document each file and field in the data pack.
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Create a default-assignment baseline.
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Create a greedy or sequential-reassignment baseline.
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Report objective value, fill rate, number of reassignments, penalty cost, and shipping cost.
3. Mathematical Formulation
Formulate the problem as either:
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A deterministic binary optimization model, or
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A weighted exact-cover or column-selection model
Clearly define variables, objective function, constraints, and feasibility requirements.
4. Solution Implementation
Implement a solution for a tractable subset of the data using a classical, heuristic, quantum, quantum-inspired, or hybrid method.
Compare the best candidate against the classical baselines using the same objective function and feasibility checks.
5. Scaling Analysis
Teams should:
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Estimate how variables or qubits grow with orders, centers, SKUs, or assignment columns.
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Identify runtime, complexity, and robustness limitations.
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Recommend at least one method for improving scalability.
Possible improvements include:
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Batching
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Column reduction
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Classical preprocessing
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Decomposition
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Parameter tuning
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Improved heuristics
Required Deliverables
Your final GitHub repository should include:
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A technical report of approximately 6–10 pages
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Runnable Python code, notebook, or repository
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Setup and execution instructions
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A 5–7 slide presentation
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A one-page “planner view” written in business language
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Baseline comparisons
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Metrics and feasibility checks
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Scalability analysis
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Documentation of assumptions and limitations
Optional Advanced Tasks
Teams may also:
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Compare exact-cover and linear-programming formulations.
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Investigate parameter tuning or feasibility repair.
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Test batching strategies.
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Add demand or inventory uncertainty.
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Build a dashboard explaining reassignment decisions.
Judging Criteria
Business understanding and communication - 15%
Data preparation and baseline quality - 15%
Optimization formulation - 20%
Quantum or hybrid implementation - 20%
Evaluation rigor - 15%
Scalability and noise insight - 10%
Novelty and presentation quality - 5%
Judges will look for a technically sound, reproducible approach that clearly explains both the optimization results and their business relevance.
Data & Privacy Requirements
Use only the anonymized or challenge-approved dataset.
Do not publish:
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Raw Nestlé operational data
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Customer or order identifiers
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Commercial costs
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Confidential distribution-center details
Public repositories should contain anonymized identifiers and aggregate metrics only. Restricted data must not be uploaded to external cloud tools unless explicitly approved.
Resources
Participants will receive access to the anonymized Nestlé proof-of-concept data pack through the challenge workspace.
Suggested tools include:
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Python
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pandas
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NumPy
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SciPy
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PuLP
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OR-Tools
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Equivalent optimization and simulation tools
Team & Deadline
Maximum team size: 3 participants
Final submission deadline: August 7, 2026
No deadline extensions will be offered.
