IDEAS home Printed from https://ideas.repec.org/a/axf/soapsa/v7y2026ip109-118.html

Reinforcement Learning Based Optimization of Multi Echelon Inventory and Collaborative Decision Making in Supply Chains: An Algorithmic Innovation Study

Author

Listed:
  • Song, Xinru

Abstract

The optimization of multi-echelon inventory systems represents a fundamental challenge in contemporary supply chain management, particularly when attempting to balance operational cost efficiency with stringent service level requirements. Traditional analytical approaches, including base stock policies and conventional heuristic methods, frequently struggle to accurately capture the dynamic interdependencies across multiple network nodes and the inherently coupled nature of inventory and transportation decisions. This study rigorously investigates the application of advanced reinforcement learning techniques to address these persistent limitations by developing a robust, data-driven decision framework for multi-node supply chain coordination. A comprehensive multi-echelon inventory model is constructed, explicitly capturing stochastic demand patterns, lead time variability, and strict transportation capacity constraints across both serial and divergent supply chain structures. The reinforcement learning agent is systematically trained to learn highly adaptive replenishment and routing policies that effectively minimize total system costs while consistently maintaining target service levels. Unlike conventional methodologies that heavily rely on survey-based or human-interactive data collection, this research strategically employs publicly available supply chain benchmarking datasets and established simulation environments for rigorous model training and evaluation. The proposed algorithmic framework significantly contributes to the emerging literature on artificial intelligence-driven supply chain optimization by demonstrating how reinforcement learning can successfully achieve an optimal cost-service balance without requiring centralized, real-time information sharing. Ultimately, findings from this research offer critical insights for the future development of scalable, resilient, and adaptive inventory management systems within increasingly complex global supply chain networks.

Suggested Citation

  • Song, Xinru, 2026. "Reinforcement Learning Based Optimization of Multi Echelon Inventory and Collaborative Decision Making in Supply Chains: An Algorithmic Innovation Study," Simen Owen Academic Proceedings Series, Scientific Open Access Publishing, vol. 7, pages 109-118.
  • Handle: RePEc:axf:soapsa:v:7:y:2026:i::p:109-118
    as

    Download full text from publisher

    File URL: https://soapubs.com/index.php/SOAPS/article/view/2184/2010
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:axf:soapsa:v:7:y:2026:i::p:109-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yuchi Liu (email available below). General contact details of provider: https://soapubs.com/index.php/SOAPS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.