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This research introduces LeadTime-ICL, a transformer-based model that leverages in-context learning with normalizing flows to handle right-censored data common in supply chain forecasting. By pretraining on synthetic tasks, the approach eliminates the need for task-specific parameter updates while delivering superior probabilistic predictions across diverse industrial datasets. The work demonstrates how advanced machine learning architectures can directly address practical constraints like incomplete order arrival times without relying on conventional survival analysis methods.
Censoring-Aware In-Context Learning for Generalized Supplier Lead Time Estimation in Supply Chain Planning
arXiv:2607.18530v1 Announce Type: cross Abstract: Supplier lead time forecasting is a central input to material requirements planning, inventory optimization, and supply chain risk management. However, many industrial lead time datasets are naturally right-censored: at the time forecasts are required, some orders have not yet arrived. Standard regression and classification approaches discard this information, while conventional survival models require task-specific modeling. We propose LeadTime-ICL (LT-ICL), a censoring-aware in-context learning model for probabilistic lead time forecasting. LT-ICL combines a transformer backbone with a conditional normalizing-flow head, producing a full predictive distribution over lead times. The model is pretrained on synthetic right-censored lead time tasks, enabling in-context adaptation to new industrial datasets without task-specific parameter updates. We provide theoretical support for this formulation by showing that excess CRPS is bounded by prior misspecification and amortized approximation errors, providing clear direction for improving forecasting performance. We evaluate LT-ICL on 24 proprietary supply-chain datasets spanning seven industries. LT-ICL achieves the lowest point-forecasting error on 15 of the 24 datasets, and the lowest probabilistic forecasting error on 14 datasets, yielding the best average rank across both. These results support right-censored probabilistic forecasting as a practical formulation for supplier lead time prediction and demonstrate that pretrained in-context models can provide accurate, low-adaptation-cost forecasting for industrial planning systems.
Abstract:Supplier lead time forecasting is a central input to material requirements planning, inventory optimization, and supply chain risk management. However, many industrial lead time datasets are naturally right-censored: at the time forecasts are required, some orders have not yet arrived. Standard regression and classification approaches discard this information, while conventional survival models require task-specific modeling. We propose LeadTime-ICL (LT-ICL), a censoring-aware in-context learning model for probabilistic lead time forecasting. LT-ICL combines a transformer backbone with a conditional normalizing-flow head, producing a full predictive distribution over lead times. The model is pretrained on synthetic right-censored lead time tasks, enabling in-context adaptation to new industrial datasets without task-specific parameter updates. We provide theoretical support for this formulation by showing that excess CRPS is bounded by prior misspecification and amortized approximation errors, providing clear direction for improving forecasting performance. We evaluate LT-ICL on 24 proprietary supply-chain datasets spanning seven industries. LT-ICL achieves the lowest point-forecasting error on 15 of the 24 datasets, and the lowest probabilistic forecasting error on 14 datasets, yielding the best average rank across both. These results support right-censored probabilistic forecasting as a practical formulation for supplier lead time prediction and demonstrate that pretrained in-context models can provide accurate, low-adaptation-cost forecasting for industrial planning systems.
Machine Learning (cs.LG); Artificial Intelligence (cs.AI)
arXiv:2607.18530 [cs.LG]
(or arXiv:2607.18530v1 [cs.LG] for this version)
https://doi.org/10.48550/arXiv.2607.18530 Focus to learn more arXiv-issued DOI via DataCite (pending registration)
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