AI-Driven Supply Chain Optimization: A Hybrid CNN-BiLSTM and Financial Strategy Framework

Citation

Hossain, Kazi Md Shahadat and Ahad, Md Abdul and Akhtar, Nahin and Nabil, Ashrafur Rahman and Amin, Md Ruhul and Sarker, Md Tanjil and Abdul Karim, Hezerul (2025) AI-Driven Supply Chain Optimization: A Hybrid CNN-BiLSTM and Financial Strategy Framework. In: 2025 Multimedia University Engineering Conference, MECON 2025, 21 July 2025 - 23 July 2025, Cyberjaya, Malaysia.

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Abstract

The complexity of U.S. supply chains, driven by globalization, ESG compliance demands, and market volatility, necessitates a transition to more intelligent and resilient operations. This study introduces an integrated framework that synergizes data-driven infrastructures, hybrid AI models (CNN-BiLSTM), and advanced financial strategies to optimize supply chain performance. Leveraging over 120 empirical studies and extensive case simulations, the framework achieves a demand forecast accuracy of 96.60%, reduces inventory and transportation costs, enhances routing efficiency, and lowers carbon emissions. Financially, AI integration yields a 154% ROI within six months and reduces disruption cost exposure by 37.5%. Methodologies include BiLSTM for demand forecasting, CNN for routing optimization, and Deep Q-Learning for inventory management, all integrated into a unified supply chain management platform. Results confirm significant operational improvements: transportation costs and inventory holding costs were cut by 12% and 14% respectively, while service levels increased by over 7%. This research presents a scalable, AI-driven model for building next-generation supply chains that are predictive, cost-efficient, and aligned with sustainability goals.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Supply chain optimization, artificial intelligence (AI)
Subjects: Q Science > QA Mathematics > QA71-90 Instruments and machines
Q Science > QH Natural history
Divisions: Faculty of Artificial Intelligence & Engineering (FAIE)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 17 Mar 2026 06:35
Last Modified: 06 Apr 2026 04:04
URII: http://shdl.mmu.edu.my/id/eprint/15487

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