LLM-Grounded Explainable AI for Supply Chain Risk Early Warning via Temporal Graph Attention Networks
Authors: Zhiming Xue, Yujue Wang, Menghao Huo
Organizations: College of Engineering, Northeastern University, Boston, USA · Department of Chemistry and Chemical Biology, University of New Mexico, Albuquerque, USA · School of Engineering, Santa Clara University, Santa Clara, USA
Disruptions at critical logistics nodes pose severe risks to global supply chains, yet existing risk prediction systems typically prioritize forecasting accuracy without providing operationally interpretable early warnings. This paper proposes an evidence-grounded framework that jointly performs supply chain bottleneck prediction and faithful natural-language risk explanation by coupling a Temporal Graph Attention Network (TGAT) with a structured large language model (LLM) reasoning module. Using maritime hubs as a representative case study for global supply chain nodes, daily spatial graphs are constructed from Automatic Identification System (AIS) broadcasts, where inter-node interactions are modeled through attention-based message passing. The TGAT predictor captures spatiotemporal risk dynamics, while model-internal evidence -- including feature z-scores and attention-derived neighbor influence -- is transformed into structured prompts that constrain LLM reasoning to verifiable model outputs. To evaluate explanatory reliability, we introduce a directional-consistency validation protocol that quantitatively measures agreement between generated risk narratives and underlying statistical evidence. Experiments on six months of real-world logistics data demonstrate that the proposed framework outperforms baseline models, achieving a test AUC of 0.761, AP of 0.344, and recall of 0.504 under a strict chronological split while producing early warning explanations with 99.6% directional consistency. Results show that grounding LLM generation in graph-model evidence enables interpretable and auditable risk reporting without sacrificing predictive performance. The framework provides a practical pathway toward operationally deployable explainable AI for supply chain risk early warning and resilience management.
Figures & tables
Fig. 1: LA/Long Beach logistics hub study area and spatial graph overview
Fig. 2: Feature-correlation chart
Fig. 3: End-to-end pipeline architecture
Fig. 4: Validation AUC-ROC across training epochs. LR, GCN and TGAT
Anticipating supply chain disruptions before they materialize is a core challenge for firms and policymakers alike. A key difficulty is learning to reason reliably about infrequent, high-impact events from noisy and unstructured inputs - a setting where general-purpose models struggle without task-specific adaptation. We introduce an end-to-end framework that trains LLMs to produce calibrated probabilistic forecasts using realized disruption outcomes as supervision. The resulting model substantially outperforms strong baselines - including GPT-5 - on accuracy, calibration, and precision. We also show that training induces more structured and reliable probabilistic reasoning without explicit prompting. These results suggest a general pathway for training domain-specific forecasting models that produce decision-ready signals. To support transparency we open-source the evaluation dataset used in this study. Dataset: https://huggingface.co/datasets/LightningRodLabs/supply-chain-predictions
Modern logistics networks generate rich operational data streams at every warehouse node and transportation lane -- from order timestamps and routing records to shipping manifests -- yet predicting delivery delays remains predominantly reactive. Existing predictive approaches typically treat this problem either as a tabular classification task, ignoring network topology, or as a time-series anomaly detection task, overlooking the spatial dependencies of the supply chain graph. To bridge this gap, we propose a hybrid deep learning framework for proactive supply chain risk management. The proposed method jointly models temporal order-flow dynamics via a lightweight Transformer patch encoder and inter-hub relational dependencies through an Edge-Aware Graph Attention Network (E-GAT), optimized via a multi-task learning objective. Evaluated on the real-world DataCo Smart Supply Chain dataset, our framework achieves consistent improvements over baseline methods, yielding an F1-score of 0.8762 and an AUC-ROC of 0.9773. Across four independent random seeds, the framework exhibits a cross-seed F1 standard deviation of only 0.0089 -- a 3.8 times improvement over the best ablated variant -- achieving the strongest balance of predictive accuracy and training stability among all evaluated models.
Zhiming Xue, Menghao Huo, Yujue Wang
College of Engineering, Northeastern University Boston, USA · School of Engineering, Santa Clara University Santa Clara, USA · Department of Chemistry and Chemical Biology, University of New Mexico Albuquerque, USA
AI agents in supply chains face a fundamental epistemic gap: large language models (LLMs) interpret policies but lack physical grounding, while reinforcement learning (RL) optimizes flows but is semantically blind to unstructured constraints. We introduce REFLECTICHAIN, bridging this gap through a Generative Supply Chain World Model (SC-WM) - encoding heterogeneous supply networks into a 6-dim graph-latent space with physical conservation - and Double-Loop Learning that separates epistemic uncertainty (KL-trust-region-bounded policy adaptation) from aleatoric uncertainty (stochastic latent rollouts). On Semi-Sim, a 10-node semiconductor benchmark with SIR risk propagation, 6 perturbation types, and 10 policy constraint templates, REFLECTICHAIN improves Rationale Consistency Score by 33.0% (p < 0.0001, d = 2.78), maintains 82.3% operability under adversarial shocks, and exhibits anti-fragile behavior (+40.2% gain under moderate pressure). We identify three operational epistemic mechanisms - uncertainty separation, knowledge-boundary detection, and empirical Bayesian policy updating - and discuss five limitation categories.
Jia Luo
School of Foreign Languages, Huazhong University of Science and Technology, Wuhan 430074, China.