Time Series Supplier Allocation via Deep Black-Litterman Model

Understand

Time Series Supplier Allocation (TSSA) poses a complex NP-hard challenge, aimed at refining future order dispatching strategies to satisfy order demands with maximum supply efficiency fully.

• Traditionally derived from financial portfolio management, the Black-Litterman (BL) model offers a new perspective for the TSSA scenario by balancing expected returns against insufficient supply risks.
• However, its application within TSSA is constrained by the reliance on manually constructed perspective matrices and spatio-temporal market dynamics, coupled with the absence of supervisory signals and data unreliability inherent to supplier information.
• To solve these limitations, we introduce the pioneering Deep Black-Litterman Model (DBLM), which innovatively adapts the BL model from financial roots to supply chain context.