Design and implementation of a local LLM-driven decision support system for AI-enhanced supply chain management

Проектирование и реализация локальной системы поддержки принятия решений на основе большой языковой модели для управления цепями поставок с использованием искусственного интеллекта
Kelvin K. L. Wong, Liurui Deng, Yingge Liu, Angbing Li, Jie Tu
2026-02-25

decision support systemsdistribution requirements planninglocal large language modelson-premise AI deploymentsupply chain management
This paper presents a large language model (LLM) decision support system for supply chain management (SCM). Building on a multi-layer architecture originally developed for intelligent manufacturing planning, the proposed artificial intelligence (Al) system is re-engineered to address end-to-end SCM tasks including supplier evaluation, inventory planning, production logistics, and distribution planning. A 14-billion-parameter LLM is deployed on-premise via the Ollama framework, allowing natural-language interaction while ensuring that sensitive SCM data remain within the local computing environment. The system integrates multiple knowledge sources – formal SCM theory, standardised process maps, structured supplier and inventory databases, and empirically calibrated forecasting models – into a single, query-driven decision pipeline. A classification module distinguishes theoretical, analytical, and procedural queries and routes them to appropriate deterministic models and knowledge bases before the LLM generates explanations. Through automated context construction and domain-restricted prompting, the AI agent produces technically validated, context-aware responses suitable for interactive planning. Experimental deployments on realistic SCM scenarios indicate that the system can provide rapid supplier scoring, inventory parameter tuning, DRP-based distribution planning, and policy comparisons with transparent, database-grounded justifications. The results demonstrate that combining local LLMs with classical decision models offers a practical path toward trustworthy, privacy-preserving AI decision support for both industrial SCM environments.
1
A local 14-billion-parameter LLM decision-support system is re-engineered for end-to-end supply chain management tasks.
2
A query-classification module routes theoretical, analytical, and procedural questions to appropriate deterministic models and knowledge bases before generating explanations.
3
On-premise deployment through Ollama keeps sensitive supply chain data within the local computing environment while enabling natural-language interaction.
4
Realistic deployments demonstrated rapid supplier scoring, inventory-parameter tuning, DRP-based distribution planning, and transparent policy comparisons grounded in database evidence.
5
The system integrates SCM theory, standardized process maps, supplier and inventory databases, and calibrated forecasting models into a query-driven decision pipeline.

a local LLM-driven decision support system for end-to-end supply chain management

trustworthy, privacy-preserving AI-enhanced planning and decision support across supplier evaluation, inventory planning, production logistics, and distribution planning

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2026-02-25
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Authors
Kelvin K. L. Wong
Liurui Deng
Yingge Liu
Angbing Li
Jie Tu
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