2023/07/21 by Marwan Mousa, Damien van de Berg, Mousa, Marwan +7 · 3 citations
Business, Management and Accounting · #FOS: Computer and information sciences #FOS: Electrical engineering #Machine Learning (cs.LG) #Multiagent Systems (cs.MA) #Supply Chain and Inventory Management #Systems and Control (eess.SY) #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.2307.11432
openalex publication_date 2023/07/21 · openalex created_date 2023/07/25 · openalex updated_date 2026/07/28
Most solutions to the inventory management problem assume a centralization of information that is incompatible with organisational constraints in real supply chain networks. The inventory management problem is a well-known planning problem in operations research, concerned with finding the optimal re-order policy for nodes in a supply chain. While many centralized solutions to the problem exist, they are not applicable to real-world supply chains made up of independent entities. The problem can however be naturally decomposed into sub-problems, each associated with an independent entity, turning it into a multi-agent system. Therefore, a decentralized data-driven solution to inventory management problems using multi-agent reinforcement learning is proposed where each entity is controlled by an agent. Three multi-agent variations of the proximal policy optimization algorithm are investigated through simulations of different supply chain networks and levels of uncertainty. The centralized training decentralized execution framework is deployed, which relies on offline centralization during simulation-based policy identification, but enables decentralization when the policies are deployed online to the real system. Results show that using multi-agent proximal policy optimization with a centralized critic leads to performance very close to that of a centralized data-driven solution and outperforms a distributed model-based solution in most cases while respecting the information constraints of the system.