Generative and Adaptive AI for Sustainable Supply Chain Design

This study explores how the integration of generative artificial intelligence, multi-objective evolutionary optimization, and reinforcement learning can enable sustainable and cost-effective decision-making in supply chain strategy. Using real-world retail demand data enriched with synthetic sustainability attributes, we trained a Variational Autoencoder (VAE) to generate plausible future demand scenarios. These were used to seed a Non-Dominated Sorting Genetic Algorithm (NSGA-II) aimed at identifying Pareto-optimal sourcing strategies that balance delivery cost and CO2 emissions. The resulting Pareto frontier revealed favorable trade-offs, enabling up to 50% emission reductions for only a 10–15% cost increase. We further deployed a deep Q-learning (DQN) agent to dynamically manage weekly shipments under a selected balanced strategy. The reinforcement learning policy achieved an additional 10% emission reduction by adaptively switching between green and conventional transport modes in response to demand and carbon pricing. Importantly, the agent also demonstrated resilience during simulated supply disruptions by rerouting decisions in real time. This research contributes a novel AI-based decision architecture that combines generative modeling, evolutionary search, and adaptive control to support sustainability in complex and uncertain supply chains.