DeepStock: Reinforcement Learning with Policy Regularizations for Inventory Management
- URL: http://arxiv.org/abs/2603.19621v1
- Date: Fri, 20 Mar 2026 03:58:18 GMT
- Title: DeepStock: Reinforcement Learning with Policy Regularizations for Inventory Management
- Abstract summary: Deep Reinforcement Learning (DRL) provides a general-purpose methodology for training inventory policies that can leverage big data and compute.<n>Off-the-shelf implementations of DRL have seen mixed success, often plagued by high sensitivity to the hyper parameters used during training.<n>We show that by imposing policy regularizations, grounded in classical inventory concepts such as "Base Stock", we can significantly accelerate hyper parameter tuning and improve the final performance of several DRL methods.
- Score: 11.55428845446959
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Deep Reinforcement Learning (DRL) provides a general-purpose methodology for training inventory policies that can leverage big data and compute. However, off-the-shelf implementations of DRL have seen mixed success, often plagued by high sensitivity to the hyperparameters used during training. In this paper, we show that by imposing policy regularizations, grounded in classical inventory concepts such as "Base Stock", we can significantly accelerate hyperparameter tuning and improve the final performance of several DRL methods. We report details from a 100% deployment of DRL with policy regularizations on Alibaba's e-commerce platform, Tmall. We also include extensive synthetic experiments, which show that policy regularizations reshape the narrative on what is the best DRL method for inventory management.
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