Paper ID

7b581c9ce200b031451f592478c7c34b5fc47898


Title

Multi-Scenario Adaptive Inventory Management: Enhancing Robustness through Deep Reinforcement Learning and Multi-Agent Systems


Introduction

Problem Statement

Current inventory management systems struggle to adapt to rapidly changing scenarios like supply chain disruptions, demand shocks, or extreme weather events, leading to inefficient resource allocation and increased costs. This problem is particularly acute in complex domains such as electrical grid scheduling, where multiple interdependent factors must be considered simultaneously.

Motivation

Traditional inventory management methods often rely on static optimization models or simple heuristics that fail to capture the complex dynamics of real-world scenarios. Recent advancements in deep reinforcement learning and multi-agent systems offer promising avenues for creating more adaptive and robust inventory management systems. By leveraging these technologies, we can develop a system that can quickly respond to changing conditions and optimize across multiple scenarios simultaneously, potentially leading to significant improvements in efficiency and cost reduction.


Proposed Method

We propose a novel Multi-Scenario Adaptive Inventory Management (MSAIM) system that combines deep reinforcement learning with a multi-agent architecture. The system consists of multiple specialized agents, each trained to handle specific scenarios (e.g., normal operations, supply chain disruptions, demand spikes). These agents use transformer-based architectures to process historical data, current inventory levels, and external factors (e.g., weather forecasts, economic indicators). The agents' outputs are then aggregated using an attention mechanism that dynamically weights their contributions based on the current situation. To enhance generalization, we employ a meta-learning approach where the system is trained on a diverse set of simulated scenarios, allowing it to quickly adapt to novel situations. Additionally, we incorporate a risk-aware component that explicitly models uncertainty and optimizes for robustness across multiple possible futures.


Experiments Plan

Step-by-Step Experiment Plan

Step 1: Data Collection and Preprocessing

Gather historical inventory data from major retailers and manufacturers. Include data on supply chain disruptions, demand fluctuations, and external factors like weather events and economic indicators. Preprocess the data to create a standardized format suitable for model input.

Step 2: Scenario Generation

Develop a scenario generation module that can create diverse simulated scenarios for training and testing. This should include normal operations, supply chain disruptions, demand spikes, and combinations of these events.

Step 3: Agent Architecture Design

Design the architecture for individual agents using transformer-based models. Each agent should be able to process historical data, current inventory levels, and external factors to make inventory decisions.

Step 4: Multi-Agent System Implementation

Implement the multi-agent system, including the attention mechanism for aggregating agent outputs. Use a framework like RLlib or PettingZoo for multi-agent reinforcement learning.

Step 5: Meta-Learning Implementation

Implement a meta-learning approach, such as Model-Agnostic Meta-Learning (MAML), to enhance the system's ability to quickly adapt to new scenarios.

Step 6: Risk-Aware Component

Develop and integrate a risk-aware component that models uncertainty and optimizes for robustness across multiple possible futures.

Step 7: Training

Train the MSAIM system on the generated scenarios using a distributed computing platform like Ray. Use a combination of supervised pretraining and reinforcement learning.

Step 8: Evaluation

Evaluate the MSAIM system against baseline methods (e.g., traditional inventory management systems, single-agent RL approaches) on both simulated and real-world datasets. Use metrics such as inventory costs, stockout rates, and adaptation speed to sudden changes.

Step 9: Stress Testing

Conduct stress tests by introducing unexpected scenarios not seen during training to assess the system's generalization capabilities.

Step 10: Analysis and Refinement

Analyze the results, identify areas for improvement, and refine the system accordingly. This may involve adjusting the agent architectures, fine-tuning the meta-learning approach, or modifying the risk-aware component.

Test Case Examples

Baseline Method Input

Current inventory: 1000 units, Historical demand: [800, 850, 900, 950, 1000] units/week, Forecast: 20% chance of supply chain disruption next week

Baseline Method Output

Order 1000 units to maintain current inventory levels

Baseline Method Explanation

The traditional system fails to account for the potential supply chain disruption and simply maintains current inventory levels based on recent demand.

Proposed Method Input

Current inventory: 1000 units, Historical demand: [800, 850, 900, 950, 1000] units/week, Forecast: 20% chance of supply chain disruption next week, Weather forecast: Clear, Economic indicators: Stable

Proposed Method Output

Order 1300 units to build up buffer stock

Proposed Method Explanation

The MSAIM system recognizes the potential for a supply chain disruption and proactively increases inventory to mitigate risk. It considers multiple factors, including weather and economic indicators, to make a more informed decision.

Fallback Plan

If the proposed MSAIM system does not meet the success criteria, we will conduct a thorough analysis to understand the reasons for underperformance. This may involve examining the individual agent behaviors, the effectiveness of the attention mechanism, and the impact of the meta-learning and risk-aware components. Based on this analysis, we can explore alternative approaches such as: 1) Implementing hierarchical reinforcement learning to better handle the complexity of multi-scenario decision-making, 2) Incorporating more sophisticated forecasting models to improve the system's predictive capabilities, or 3) Developing a hybrid approach that combines data-driven methods with expert knowledge in the form of constrained optimization. Additionally, we can turn the project into an analysis paper by conducting ablation studies to isolate the impact of each component (e.g., multi-agent architecture, meta-learning, risk-aware component) on overall performance. This could provide valuable insights into the strengths and limitations of different approaches to adaptive inventory management in complex, dynamic environments.


References

  1. Inventory Optimization in Retail Supply Chains Using Deep Reinforcement Learning (2025)
  2. Deep Reinforcement Learning for Optimal Replenishment in Stochastic Assembly Systems (2025)
  3. Outbound Modeling for Inventory Management (2025)
  4. Computing optimal policies for managing inventories with noisy observations (2025)
  5. Two‐stage stochastic demand response in smart grid considering random appliance usage patterns (2018)
  6. Fully dynamic reorder policies with deep reinforcement learning for multi-echelon inventory management (2023)
  7. Two-Stage Stochastic Programming Method for Multi-Energy Microgrid System (2020)
  8. Deep RL Dual Sourcing Inventory Management with Supply and Capacity Risk Awareness (2025)
  9. Single-Site Perishable Inventory Management Under Uncertainties: A Deep Reinforcement Learning Approach (2023)
  10. Adaptive Inventory Strategies using Deep Reinforcement Learning for Dynamic Agri-Food Supply Chains (2025)