EXPEDIS: An exact penalty method over discrete sets

We address the problem of minimizing a quadratic function subject to linear constraints over binary variables. introduce exact solution method called EXPEDIS where constrained is transformed into max-cut instance, and then thewhole machinery available for can be used solve problem. derive theory in order find transformation spirit an penalty method; however, we are only interested exactness set In compute maximum cut use solver BiqMac. Numerical results show that this algorithm successfully applied on various classes problems.