Enhanced Supplier Clustering Using an Improved Arithmetic Optimizer Algorithm

This paper presents a novel approach to supplier clustering by utilizing the Arithmetic Optimizer Algorithm (AOA), addressing the complex challenge of supplier segmentation in modern supply chain management. The AOA framework is applied to solve the multi-criteria clustering problem inherent to supplier classification. Using a real-world dataset of 500 suppliers with 12 performance criteria, including cost, quality, delivery reliability, and sustainability metrics, our method demonstrates effective clustering performance compared to conventional techniques. The AOA achieves a silhouette coefficient of 56.5% and a Davies–Bouldin index of 56.6%, outperforming several other state-of-the-art metaheuristic algorithms, including the Grey Wolf Optimizer (GWO), Whale Optimization Algorithm (WOA), Salp Swarm Algorithm (SSA), and Harris Hawks Optimization (HHO). The algorithm’s robustness is validated through extensive sensitivity analysis and statistical tests. The results indicate that the proposed approach successfully identifies distinct supplier segments with approximately 85% accuracy, enabling more effective supplier relationship management strategies.