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This research demonstrates how Large Language Models can effectively bridge the gap between qualitative business context and quantitative optimization in logistics, significantly reducing capacity planning errors compared to traditional methods alone. By integrating a chain-of-thought reasoning protocol with an operations model, LLMs successfully translate natural language inputs into actionable structural decisions for complex freight networks. The study validates that incorporating textual insights directly into mathematical workflows yields measurable performance gains without sacrificing optimality.
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LLM-Guided Transportation Hub Capacity Planning with Textual Business Inputs

arXiv2 min read

arXiv:2607.03651v2 Announce Type: replace Abstract: While traditional hub capacity planning models optimize effectively for quantitative inputs, they often fail to digest qualitative business context. We propose a novel framework where a large language model (LLM) agent iteratively proposes hub capacity decisions guided by natural-language business context descriptions. The key mechanism is a chain-of-thought reasoning protocol: the LLM constructs a structured decision table that maps each contextual item to specific capacity adjustments based on the implied direction and magnitude of changes. The new capacity decision is then validated through a feedback loop with an optimization model, which provides routing-based performance metrics to guide the agent's selection. On a real-world 13-hub freight network in the southeastern US, our framework achieves a 2.8% optimality gap relative to the hidden ground-truth, a significant improvement over the 11.0% gap produced by the traditional optimization model without textual business inputs. This demonstrates that LLMs can serve as a contextual bridge, integrating qualitative business insights into Operations Research workflows.

Abstract:While traditional hub capacity planning models optimize effectively for quantitative inputs, they often fail to digest qualitative business context. We propose a novel framework where a large language model (LLM) agent iteratively proposes hub capacity decisions guided by natural-language business context descriptions. The key mechanism is a chain-of-thought reasoning protocol: the LLM constructs a structured decision table that maps each contextual item to specific capacity adjustments based on the implied direction and magnitude of changes. The new capacity decision is then validated through a feedback loop with an optimization model, which provides routing-based performance metrics to guide the agent's selection. On a real-world 13-hub freight network in the southeastern US, our framework achieves a 2.8% optimality gap relative to the hidden ground-truth, a significant improvement over the 11.0% gap produced by the traditional optimization model without textual business inputs. This demonstrates that LLMs can serve as a contextual bridge, integrating qualitative business insights into Operations Research workflows.

Machine Learning (cs.LG); Optimization and Control (math.OC)

arXiv:2607.03651 [cs.LG]

(or arXiv:2607.03651v2 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2607.03651 Focus to learn more arXiv-issued DOI via DataCite

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Full text under the publisher's open licence · 253 words

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