OptiRepair: Closed-Loop Diagnosis and Repair of Supply Chain Optimization Models with LLM Agents

Abstract

Supply chain optimization models frequently become infeasible because of modeling errors. Diagnosis and repair require scarce OR expertise: analysts must interpret solver diagnostics, trace root causes across echelons, and fix formulations without sacrificing operational soundness. Whether AI agents can perform this task remains untested. We decompose this task into two phases: a domain-agnostic feasibility phase that iteratively repairs any LP using IIS-guided diagnosis, and a domain-specific validation phase that enforces five rationality checks grounded in inventory theory. We test 22 API models from seven families on 976 multi-echelon supply chain problems and train two 8B-parameter models with self-taught reasoning and solver-verified rewards. The trained models reach 81.7% Rational Recovery Rate (RRR) -- the fraction of problems resolved to both feasibility and operational rationality -- versus 42.2% for the best API model and 21.3% on average. The gap concentrates in Phase 1 repair, where API models average 27.6% recovery rate versus 97.2% for trained models. Two gaps separate current AI from reliable model repair: solver interaction, as API models restore only 27.6% of infeasible formulations; and operational rationale, as roughly one in four feasible repairs violate supply chain theory. Each gap requires a different intervention -- targeted training closes the solver interaction gap, while explicit specification as solver-verifiable checks closes the rationality gap. For organizations adopting AI in operational planning, formalizing what 'rational' means in their context is the higher-return investment.