Deep Reinforcement Learning for Inventory Networks: Toward Reliable Policy Optimization

• URL: http://arxiv.org/abs/2306.11246v3
• Date: Wed, 10 Sep 2025 21:32:10 GMT
• Title: Deep Reinforcement Learning for Inventory Networks: Toward Reliable Policy Optimization
• Authors: Matias Alvo, Daniel Russo, Yash Kanoria, Minuk Lee,
• Abstract summary: We argue that inventory management presents unique opportunities for the reliable application of deep reinforcement learning (DRL)<n>The first is Hindsight Differentiable Policy Optimization (HDPO), which uses pathwise gradients from offline counterfactual simulations to directly and efficiently optimize policy performance.<n>We exploit Graph Neural Networks (GNNs) as a natural inductive bias for encoding supply chain structure, demonstrate that they can represent optimal and near-optimal policies in two theoretical settings, and empirically show that they reduce data requirements across six diverse inventory problems.
• Score: 2.9016349714298157
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: We argue that inventory management presents unique opportunities for the reliable application of deep reinforcement learning (DRL). To enable this, we emphasize and test two complementary techniques. The first is Hindsight Differentiable Policy Optimization (HDPO), which uses pathwise gradients from offline counterfactual simulations to directly and efficiently optimize policy performance. Unlike standard policy gradient methods that rely on high-variance score-function estimators, HDPO computes gradients by differentiating through the known system dynamics. Via extensive benchmarking, we show that HDPO recovers near-optimal policies in settings with known or bounded optima, is more robust than variants of the REINFORCE algorithm, and significantly outperforms generalized newsvendor heuristics on problems using real time series data. Our second technique aligns neural policy architectures with the topology of the inventory network. We exploit Graph Neural Networks (GNNs) as a natural inductive bias for encoding supply chain structure, demonstrate that they can represent optimal and near-optimal policies in two theoretical settings, and empirically show that they reduce data requirements across six diverse inventory problems. A key obstacle to progress in this area is the lack of standardized benchmark problems. To address this gap, we open-source a suite of benchmark environments, along with our full codebase, to promote transparency and reproducibility. All resources are available at github.com/MatiasAlvo/Neural_inventory_control.

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