AI-Driven Supply Chain Management in the United States: Machine Learning for Predictive Analytics and Business Decision-Making

Authors

  • Kamana Parvej Mishu College of Graduate and Professional Studies, Trine University, Angola, IN 46703, USA Author
  • Mohammad Tahmid Ahmed College of Graduate and Professional Studies, Trine University, Angola, IN 46703, USA Author
  • Mohammad Morshed Uddin Al Mostam Sek Billah Department of Civil Engineering, Bangladesh University of Engineering and Technology, Dhaka -1000, Bangladesh Author
  • Mohammad Delowar Hossain Gazi College of Graduate and Professional Studies, Trine University, Angola, IN 46703, USA; Author
  • Sakera Begum School of IT, Washington University of Science and Technology, Alexandria, VA 22314, USA Author
  • Md Mahmudul Hasan Department of Computer Science and Engineering, Daffodil International University, Daffodil Smart City, Birulia 1216, Dhaka, Bangladesh Author

DOI:

https://doi.org/10.48047/s7cc5r20

Keywords:

Supply Chain Management (SCM); Predictive Analytics; Convolutional Long ShortTerm Memory (ConvLSTM); LADE (Last-Mile Delivery); Data-Driven Decision-Making

Abstract

The growing complexity of the global supply chains, the dynamic market environment, and expedited digitalization require the use of sophisticated data-driven models of operational forecasting and decision-making. This paper presents a proposed AI supply chain management predictive analytics framework based on the approaches of machine learning and deep learning to
improve the predictability and business acumen of the company. Based on the LADE (Last-Mile Delivery) data set, which focuses on based on the United States of America operational data, a range of models, such as linear regression, random forest, XGBoost, and a hybrid Convolutional Long Short-Term Memory (ConvLSTM) network, has been created and measured. The suggested ConvLSTM network combines convolutional layers of localized timebased feature extraction and LSTM layers of long-term sequential dependencies. Compared outputs prove that the ConvLSTM is better than all the baselines with the RMSE of 466.33, MAE of 234.86, and R2 of 0.988, which reflect a good ability to predict and generalize. It has been experimentally confirmed that the hybrid architecture is effective in modeling nonlinear dynamic relationships in the supply chain data to generate robust and accurate revenue forecasts This study is added to the ever-expanding body of AI-powered supply chain intelligence by showing how deep sequential learning structures can be used to deliver actionable recommendations in both strategic and operational management. The next step in future studies includes incorporating more external data streams, the attention-based or transformer design, and the development of real-time decision-support systems that will enhance dynamism and performance in complicated logistics settings.

Downloads

Download data is not yet available.

References

R. Jabla, M. Khemaja, F. Buendia, and S. Faiz, “Automatic Rule Generation for DecisionMaking in Context-Aware Systems Using Machine Learning,” Comput. Intell. Neurosci., vol.

, pp. 1–13, May 2022, doi: 10.1155/2022/5202537.

Y. N. Liu and S. Y. Wu, “A rule-based approach for dynamic analytic hierarchy process

decision-making,” Int. J. Inf. Decis. Sci., vol. 12, no. 1, p. 36, 2020, doi:

1504/IJIDS.2020.104994.

A. T. Rosário and J. C. Dias, “How Industry 4.0 and Sensors Can Leverage Product Design:

Opportunities and Challenges,” Sensors, vol. 23, no. 3, p. 1165, Jan. 2023, doi:

3390/s23031165.

X. Xu, H.-S. Kim, S.-S. You, and S.-D. Lee, “Active management strategy for supply chain

system using nonlinear control synthesis,” Int. J. Dyn. Control, vol. 10, no. 6, pp. 1981–1995,

Dec. 2022, doi: 10.1007/s40435-021-00901-5.

A. Aamer, L. P. Eka Yani, and I. M. Alan Priyatna, “Data Analytics in the Supply Chain

Management: Review of Machine Learning Applications in Demand Forecasting,” Oper.

Supply Chain Manag. Int. J., pp. 1–13, Dec. 2020, doi: 10.31387/oscm0440281.

R. Sharma, A. Shishodia, A. Gunasekaran, H. Min, and Z. H. Munim, “The role of artificial

intelligence in supply chain management: mapping the territory,” Int. J. Prod. Res., vol. 60,

no. 24, pp. 7527–7550, Dec. 2022, doi: 10.1080/00207543.2022.2029611.

M. Shrivastav, “Barriers Related to AI Implementation in Supply Chain Management:,” J.

Glob. Inf. Manag., vol. 30, no. 8, pp. 1–19, Feb. 2022, doi: 10.4018/JGIM.296725.

R. Toorajipour, V. Sohrabpour, A. Nazarpour, P. Oghazi, and M. Fischl, “Artificial intelligence

in supply chain management: A systematic literature review,” J. Bus. Res., vol. 122, pp. 502–

, 2021.

M. Pournader, A. Kach, and S. Talluri, “A review of the existing and emerging topics in the

supply chain risk management literature,” Decis. Sci., vol. 51, no. 4, pp. 867–919, 2020.

M. A. Mediavilla, F. Dietrich, and D. Palm, “Review and analysis of artificial intelligence

methods for demand forecasting in supply chain management,” Procedia CIRP, vol. 107, pp.

–1131, 2022.

K. Douaioui, R. Oucheikh, O. Benmoussa, and C. Mabrouki, “Machine Learning and Deep

Learning Models for Demand Forecasting in Supply Chain Management: A Critical Review.,”

Appl. Syst. Innov. ASI, vol. 7, no. 5, 2024.

K. Tsolaki, T. Vafeiadis, A. Nizamis, D. Ioannidis, and D. Tzovaras, “Utilizing machine

learning on freight transportation and logistics applications: A review,” ICT Express, vol. 9,

no. 3, pp. 284–295, 2023.

F. Sunmola and G. Baryannis, “Artificial Intelligence Opportunities for Resilient Supply

Chains,” IFAC-Pap., vol. 58, no. 19, pp. 813–818, 2024.

J. Gijsbrechts, R. N. Boute, J. A. Van Mieghem, and D. J. Zhang, “Can deep reinforcement

learning improve inventory management? Performance on lost sales, dual-sourcing, and multiechelon problems,” Manuf. Serv. Oper. Manag., vol. 24, no. 3, pp. 1349–1368, 2022.

W. Villegas-Ch, A. M. Navarro, and S. Sanchez-Viteri, “Optimization of inventory

management through computer vision and machine learning technologies,” Intell. Syst. Appl.,

vol. 24, p. 200438, 2024.

M. A. Mediavilla, F. Dietrich, and D. Palm, “Review and analysis of artificial intelligence

methods for demand forecasting in supply chain management,” Procedia CIRP, vol. 107, pp.

–1131, 2022.

K. Douaioui, R. Oucheikh, O. Benmoussa, and C. Mabrouki, “Machine Learning and Deep

Learning Models for Demand Forecasting in Supply Chain Management: A Critical Review.,”

Appl. Syst. Innov. ASI, vol. 7, no. 5, 2024.

K. Tsolaki, T. Vafeiadis, A. Nizamis, D. Ioannidis, and D. Tzovaras, “Utilizing machine

learning on freight transportation and logistics applications: A review,” ICT Express, vol. 9,

no. 3, pp. 284–295, 2023.

J. Gijsbrechts, R. N. Boute, J. A. Van Mieghem, and D. J. Zhang, “Can deep reinforcement

learning improve inventory management? Performance on lost sales, dual-sourcing, and multiechelon problems,” Manuf. Serv. Oper. Manag., vol. 24, no. 3, pp. 1349–1368, 2022.

M. A. Mediavilla, F. Dietrich, and D. Palm, “Review and analysis of artificial intelligence

methods for demand forecasting in supply chain management,” Procedia CIRP, vol. 107, pp.

–1131, 2022.

K. Douaioui, R. Oucheikh, O. Benmoussa, and C. Mabrouki, “Machine Learning and Deep

Learning Models for Demand Forecasting in Supply Chain Management: A Critical Review.,”

Appl. Syst. Innov. ASI, vol. 7, no. 5, 2024.

L. Wu et al., “Lade: The first comprehensive last-mile delivery dataset from industry,”

ArXiv Prepr. ArXiv230610675, 2023.

A. Derry, M. Krzywinski, and N. Altman, “Convolutional neural networks,” 2023.

T. Hayat, M. S. Islam, M. Hossain, N. Hasan, M. Parvez, and Md. J. Hoque, “Machine

Learning Techniques for Brain Tumor Classification: A CNN-SVM Approach,” in 2024

International Conference on Innovations in Science, Engineering and Technology (ICISET),

Chittagong, Bangladesh: IEEE, Oct. 2024, pp. 1–6. doi:

1109/ICISET62123.2024.10939981.

Z. C. Lipton, J. Berkowitz, and C. Elkan, “A Critical Review of Recurrent Neural Networks

for Sequence Learning,” Oct. 17, 2015, arXiv: arXiv:1506.00019. doi:

48550/arXiv.1506.00019.

K. Smagulova and A. P. James, “A survey on LSTM memristive neural network

architectures and applications,” Eur. Phys. J. Spec. Top., vol. 228, no. 10, pp. 2313–2324, Oct.

, doi: 10.1140/epjst/e2019-900046-x.

T. Fischer and C. Krauss, “Deep learning with long short-term memory networks for

financial market predictions,” Eur. J. Oper. Res., vol. 270, no. 2, pp. 654–669, Oct. 2018, doi:

1016/j.ejor.2017.11.054.

E. Terzi, F. Bonassi, M. Farina, and R. Scattolini, “Learning model predictive control with

long short‐term memory networks,” Int. J. Robust Nonlinear Control, vol. 31, no. 18, pp.

–8896, Dec. 2021, doi: 10.1002/rnc.5519.

Downloads

Published

2024-03-12

How to Cite

AI-Driven Supply Chain Management in the United States: Machine Learning for Predictive Analytics and Business Decision-Making (K. Parvej Mishu, M. Tahmid Ahmed, M. M. U. Al Mostam Sek Billah, M. D. Hossain Gazi, S. Begum, & M. Mahmudul Hasan , Trans.). (2024). Cuestiones De Fisioterapia, 53(03), 5755-5768. https://doi.org/10.48047/s7cc5r20