Developing a smart green supplier risk assessment system integrating natural language processing and life cycle assessment based on AHP framework: An empirical study

Abstract

Global carbon reduction drives the transformations of corporations, emphasizing carbon and environmental impact within supply chains. A critical challenge in risk management is converting unstructured data into quantifiable information, and ruining the conversion often leads to ineffective risk assessments. While artificial intelligence is increasingly used in supply chain risk management, previous studies seldom integrate text analysis for risk extraction and lack accurate risk assessment methods. This study pioneers an intelligent green supplier risk assessment system integrating natural language processing (NLP) and life cycle assessment (LCA) based on an analytic hierarchy process (AHP) framework. The proposed approach utilizes NLP keyword extraction to identify and assess risk and uses LCA to uncover environmental risks, minimizing negative impacts. The text classification model attains 81.7 % accuracy, ensuring a trustworthy risk assessment system. The proposed method could significantly improve risk analysis efficiency, foster sustainable procurement, and elevate enterprise competitiveness in sustainable business practices.