Leveraging Large Language Models for Risk Assessment in Hyperconnected Logistic Hub Network Deployment
This addresses risk assessment challenges in supply chain logistics, but it is incremental as it applies existing LLM methods to a specific domain.
The paper tackled dynamic risk assessment for deploying hyperconnected logistic hub networks by designing an LLM-driven pipeline that analyzes unstructured data like geopolitical and financial trends, resulting in a structured approach to identify and cluster risks for improved decision-making.
The growing emphasis on energy efficiency and environmental sustainability in global supply chains introduces new challenges in the deployment of hyperconnected logistic hub networks. In current volatile, uncertain, complex, and ambiguous (VUCA) environments, dynamic risk assessment becomes essential to ensure successful hub deployment. However, traditional methods often struggle to effectively capture and analyze unstructured information. In this paper, we design an Large Language Model (LLM)-driven risk assessment pipeline integrated with multiple analytical tools to evaluate logistic hub deployment. This framework enables LLMs to systematically identify potential risks by analyzing unstructured data, such as geopolitical instability, financial trends, historical storm events, traffic conditions, and emerging risks from news sources. These data are processed through a suite of analytical tools, which are automatically called by LLMs to support a structured and data-driven decision-making process for logistic hub selection. In addition, we design prompts that instruct LLMs to leverage these tools for assessing the feasibility of hub selection by evaluating various risk types and levels. Through risk-based similarity analysis, LLMs cluster logistic hubs with comparable risk profiles, enabling a structured approach to risk assessment. In conclusion, the framework incorporates scalability with long-term memory and enhances decision-making through explanation and interpretation, enabling comprehensive risk assessments for logistic hub deployment in hyperconnected supply chain networks.