Supply Chain Optimization

Modeling coordination among generative agents in complex multi-round decision-making presents a core challenge for AI and operations management. Although behavioral experiments have revealed cognitive biases behind supply chain inefficiencies, traditional methods face scalability and control limitations. We introduce a scalable experimental paradigm using Large Language Models (LLMs) to simulate multi-stage supply chain dynamics. Grounded in a Hierarchical Reasoning Framework, this study specifically analyzes the impact of cognitive heterogeneity on agent interactions. Unlike prior homogeneous settings, we employ DeepSeek and GPT agents to systematically vary reasoning sophistication across supply chain tiers. Through rigorously replicated and statistically validated simulations, we investigate how this cognitive diversity influences collective outcomes. Results indicate that agents exhibit myopic and self-interested behaviors that exacerbate systemic inefficiencies. However, we demonstrate that information sharing effectively mitigates these adverse effects. Our findings extend traditional behavioral methods and offer new insights into the dynamics of AI-enabled organizations. This work underscores both the potential and limitations of LLM-based agents as proxies for human decision-making in complex operational environments.

Software supply chain security compromises often stem from cascaded interactions of vulnerabilities, for example, between multiple vulnerable components. Yet, Software Bill of Materials (SBOM)-based pipelines for security analysis typically treat scanner findings as independent per-CVE (Common Vulnerabilities and Exposures) records. We propose a new research direction based on learning multi-vulnerability attack chains through a novel SBOM-driven graph-learning approach. This treats SBOM structure and scanner outputs as a dependency-constrained evidence graph rather than a flat list of vulnerabilities. We represent vulnerability-enriched CycloneDX SBOMs as heterogeneous graphs whose nodes capture software components and known vulnerabilities (i.e, CVEs), connected by typed relations, such as dependency and vulnerability links. We train a Heterogeneous Graph Attention Network (HGAT) to predict whether a component is associated with at least one known vulnerability as a feasibility check for learning over this structure. Additionally, we frame the discovery of cascading vulnerabilities as CVE-pair link prediction using a lightweight Multi-Layer Perceptron (MLP) neural network trained on documented multi-vulnerability chains. Validated on 200 real-world SBOMs from the Wild SBOMs public dataset, the HGAT component classifier achieves 91.03% Accuracy and 74.02% F1-score, while the cascade predictor model (MLP) achieves a Receiver Operating Characteristic - Area Under Curve (ROC-AUC) of 0.93 on a seed set of 35 documented attack chains.

Demand forecasting is critical for inventory planning, procurement, replenishment, production, and capacity decisions in heterogeneous supply chains. However, selecting the most appropriate model for each demand series remains challenging because performance varies across datasets, demand structures, horizons, and evaluation metrics. This study proposes the Adaptive Hybrid Selector (AHS), an automatic model-selection rule that combines observed predictive performance with structural demand information. AHS uses demand frequency and series variability to activate a hierarchical logic based on RMSSE, MAE, sMAPE, and BIAS. The proposed selector is compared with Overall Weighted Average (OWA), a benchmark-relative criterion based on sMAPE and MASE, and Equilibrium Ranking Aggregation (ERA), a comparator based on MAE, RMSE, and R^2 rankings. The empirical evaluation uses the Walmart, M3, M4, and M5 datasets, three training-testing partitions, 22 forecasting models, and horizons of up to 12 cycles. Selector performance is assessed ex post using Global Relative Accuracy (GRA), interpreted as an indicator of volumetric coherence between accumulated forecasted demand and observed demand. Results show that AHS provides the most robust overall behavior, especially in M5, while OWA remains competitive in more regular datasets. ERA shows lower volumetric coherence in most configurations. These findings suggest that automatic model selection should account for demand structure and be evaluated using ex post indicators of volumetric coherence.

We propose two methodologies for modelling aggregated supply and demand curves in the EPEX SPOT Day\char45 Ahead market, emphasizing generative models as a way to recover distributional variability. The first is a low\char45 dimensional parametric representation that yields deterministic point forecasts; the second is a high\char45 dimensional order\char45 level representation that samples from a conditional distribution of plausible curves. Both model the full curve structure, enabling the analysis of price sensitivity, volume sensitivity, and price impact. The parametric representation uses plateau levels, elastic\char45 region boundaries, and polynomial coefficients, forecast with eXtreme Gradient Boosting. The main contribution is the generative representation, which uses price arrivals and volume\char45 increment marks and is implemented with conditional Denoising Diffusion Probabilistic Models. Using French EPEX data from 2021 to 2024, we evaluate both approaches through curve reconstruction and a price\char45 maker storage optimization problem. The parametric implementation provides a deterministic reference, while the diffusion\char45 based implementation produces distributions of plausible curves and achieves higher realized profits and smaller gaps to an oracle benchmark in the storage application.