Extraction of business relationships in supply networks using statistical learning theory

Supply chain management represents one of the most important scientific streams of operations research. The supply of energy, materials, products, and services involves millions of transactions conducted among national and local business enterprises. To deliver efficient and effective support for supply chain design and management, structural analyses and predictive models of customer-supplier relationships are expected to clarify current enterprise business conditions and to help enterprises identify innovative business partners for future success. This article presents the outcomes of a recent structural investigation concerning a supply network in the central area of Japan. We investigated the effectiveness of statistical learning theory to express the individual differences of a supply chain of enterprises within a certain business community using social network analysis. In the experiments, we employ support vector machine to train a customer-supplier relationship model on one of the main communities extracted from a supply network in the central area of Japan. The prediction results reveal an F-value of approximately 70% when the model is built by using network-based features, and an F-value of approximately 77% when the model is built by using attribute-based features. When we build the model based on both, F-values are improved to approximately 82%. The results of this research can help to dispel the implicit design space concerning customer-supplier relationships, which can be explored and refined from detailed topological information provided by network structures rather than from traditional and attribute-related enterprise profiles. We also investigate and discuss differences in the predictive accuracy of the model for different sizes of enterprises and types of business communities.