LLM-Powered Root Cause Intelligence for Inventory and Shipment Discrepancies in Warehouse Management Systems
DOI:
https://doi.org/10.69968/ijisem.2026v5i430-38Keywords:
Large Language Models, Root Cause Analysis, Inventory Discrepancies, Shipment Discrepancies, Warehouse Management Systems, Retrieval-Augmented Generation, Graph Causality Engine, Supply Chain Intelligence, LLaMA, LoRA Fine-TuningAbstract
Inventory and shipment discrepancies in Warehouse Management Systems (WMS) impose significant operational costs on global supply chains, yet current diagnostic approaches remain fragmented, reactive, and heavily reliant on domain-expert intervention. This paper proposes the LLM-Powered Root Cause Intelligence (LRCI) framework, a novel architecture that unifies a fine-tuned Large Language Model (LLM) with Retrieval-Augmented Generation (RAG), a Graph-based Causality Engine (GCE), and a structured anomaly detection pipeline for real-time, interpretable root cause analysis of WMS discrepancies. The framework ingests multi-source operational data — WMS event logs, ERP transaction records, IoT sensor telemetry, and carrier API feeds — and processes them through a four-stage pipeline culminating in LLM-generated root cause diagnoses with natural-language explanations and remediation recommendations. Evaluated on an industrial dataset of 18,500 discrepancy records across six distribution centres, the proposed LRCI framework achieves 94.7% accuracy, 93.1% precision, 95.2% recall, and an F1-score of 94.1%, with a mean root cause identification latency of 1.8 seconds. These results represent consistent improvements of 4.6 to 23.4 percentage points over rule-based, machine-learning, and zero-shot LLM baselines, demonstrating the framework's practical viability for real-time deployment in high-volume warehouse environments.
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Copyright (c) 2026 Rajesh Kumar Sharma, Priya Venkataraman, Suresh Narayanan

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