Dynamic Optimization of Multi-Echelon Supply Chain Inventory Policies Under Disruptive Scenarios: A Deep Reinforcement Learning Approach
Year: 2025
Type: article
Abstract: Addressing two types of supply chain disruptions—frequent short-duration disruptions (e.g., minor natural disasters) and infrequent long-duration disruptions (e.g., geopolitical conflicts, public health crises)—while considering their impact on logistics capacity, this paper proposes a multi-echelon inventory management optimization framework based on the Proximal Policy Optimization (PPO) algorithm. Unlike traditional inventory control models with simplistic assumptions, this study integrates factors such as the frequency, duration, and impact of disruptions into the inventory optimization process. It is designed to coordinate replenishment decisions at the warehouse while reacting to local retailer states. Since retailers share the same cost parameters and demand dynamics, their decision problems are structurally symmetric, which allows us to use a shared policy across retailers and thus keep the learning model compact and scalable. Numerical experiments compare the PPO policy with classical inventory heuristics under various network sizes and disruption types. The results show that PPO consistently achieves lower total costs than the benchmarks, and its relative advantage becomes more pronounced under severe or longer disruptions. These findings suggest that modern policy-gradient methods, combined with simple forms of structural symmetry, can provide an effective and scalable tool for managing disrupted multi-echelon supply chains.
Source: Symmetry
DOI: 10.3390/sym17122078
Institution: Hefei University of Technology
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,896
Awards: G3675684452, G4362327233
OpenAlex ID: W4416993778