A neuro-dynamic programming approach to retailer inventory management

We discuss an application of neuro-dynamic programming techniques to the optimization of retailer inventory systems. We describe a specific case study involving a model with thirty-three state variables. The enormity of this state space renders classical algorithms of dynamic programming inapplicabl...

Full description

Saved in:
Bibliographic Details
Published inProceedings of the 36th IEEE Conference on Decision and Control Vol. 4; pp. 4052 - 4057 vol.4
Main Authors Van Roy, B., Bertsekas, D.P., Lee, Y., Tsitsiklis, J.N.
Format Conference Proceeding
LanguageEnglish
Published IEEE 1997
Subjects
Approximation algorithms
Artificial intelligence
Artificial neural networks
Buffer storage
Computational modeling
Costs
Dynamic programming
Inventory management
Laboratories
Transportation
Online AccessGet full text
ISBN0780341872
9780780341876
ISSN0191-2216
DOI10.1109/CDC.1997.652501

Cover

Abstract We discuss an application of neuro-dynamic programming techniques to the optimization of retailer inventory systems. We describe a specific case study involving a model with thirty-three state variables. The enormity of this state space renders classical algorithms of dynamic programming inapplicable. We compare the performance of solutions generated by neuro-dynamic programming algorithms to that delivered by optimized s-type ("order-up-to") policies. We are able to generate control strategies substantially superior, reducing inventory costs by approximately ten percent.
AbstractList We discuss an application of neuro-dynamic programming techniques to the optimization of retailer inventory systems. We describe a specific case study involving a model with thirty-three state variables. The enormity of this state space renders classical algorithms of dynamic programming inapplicable. We compare the performance of solutions generated by neuro-dynamic programming algorithms to that delivered by optimized s-type ("order-up-to") policies. We are able to generate control strategies substantially superior, reducing inventory costs by approximately ten percent.
Author Tsitsiklis, J.N.
Bertsekas, D.P.
Lee, Y.
Van Roy, B.
Author_xml – sequence: 1
  givenname: B.
  surname: Van Roy
  fullname: Van Roy, B.
  organization: Unica Technol. Inc., Lincoln, MA, USA
– sequence: 2
  givenname: D.P.
  surname: Bertsekas
  fullname: Bertsekas, D.P.
– sequence: 3
  givenname: Y.
  surname: Lee
  fullname: Lee, Y.
– sequence: 4
  givenname: J.N.
  surname: Tsitsiklis
  fullname: Tsitsiklis, J.N.
BookMark eNotj81Kw0AURgesYFtdC67mBVLvnSRzk2WJ9QcKbnRdbpM7caSZhGkU8vYG6upw4PDBt1KL0AdR6h5hgwjlY_VUbbAsaWNzkwNeqRVQAWmGBZmFWgKWmBiD9katzudvACjA2qXabXWQn9gnzRS487UeYt9G7jofWs3DbFx_6bHXUUb2J4nah18JYx8n3XHgVrrZbtW149NZ7v65Vp_Pu4_qNdm_v7xV233ikcyYkBTuaE3NmVgU65yllGoGpDTPrCPOGiIhBwU2JaDL2NS5ScVSNhdHSNfq4bLrReQwRN9xnA6Xx-kfRFBL-w
ContentType Conference Proceeding
DBID 6IE
6IL
CBEJK
RIE
RIL
DOI 10.1109/CDC.1997.652501
DatabaseName IEEE Electronic Library (IEL) Conference Proceedings
IEEE Proceedings Order Plan All Online (POP All Online) 1998-present by volume
IEEE Xplore All Conference Proceedings
IEL
IEEE Proceedings Order Plans (POP All) 1998-Present
DatabaseTitleList
Database_xml – sequence: 1
  dbid: RIE
  name: IEL
  url: https://proxy.k.utb.cz/login?url=https://ieeexplore.ieee.org/
  sourceTypes: Publisher
DeliveryMethod fulltext_linktorsrc
Discipline Engineering
EndPage 4057 vol.4
ExternalDocumentID 652501
GroupedDBID 29P
6IE
6IF
6IH
6IK
6IL
6IM
AAJGR
AFFNX
ALMA_UNASSIGNED_HOLDINGS
CBEJK
IPLJI
RIE
RIL
RNS
ID FETCH-LOGICAL-i172t-7e8fb62ca4e61e6ff6737ca0173546f7a4d77e7f081d901f4a2c523e674735b03
IEDL.DBID RIE
ISBN 0780341872
9780780341876
ISSN 0191-2216
IngestDate Tue Aug 26 16:56:54 EDT 2025
IsPeerReviewed false
IsScholarly false
Language English
LinkModel DirectLink
MergedId FETCHMERGED-LOGICAL-i172t-7e8fb62ca4e61e6ff6737ca0173546f7a4d77e7f081d901f4a2c523e674735b03
ParticipantIDs ieee_primary_652501
PublicationCentury 1900
PublicationDate 19970000
PublicationDateYYYYMMDD 1997-01-01
PublicationDate_xml – year: 1997
  text: 19970000
PublicationDecade 1990
PublicationTitle Proceedings of the 36th IEEE Conference on Decision and Control
PublicationTitleAbbrev CDC
PublicationYear 1997
Publisher IEEE
Publisher_xml – name: IEEE
SSID ssj0008066
ssj0000455054
Score 1.3506509
Snippet We discuss an application of neuro-dynamic programming techniques to the optimization of retailer inventory systems. We describe a specific case study...
SourceID ieee
SourceType Publisher
StartPage 4052
SubjectTerms Approximation algorithms
Artificial intelligence
Artificial neural networks
Buffer storage
Computational modeling
Costs
Dynamic programming
Inventory management
Laboratories
Transportation
Title A neuro-dynamic programming approach to retailer inventory management
URI https://ieeexplore.ieee.org/document/652501
Volume 4
hasFullText 1
inHoldings 1
isFullTextHit
isPrint
link http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwjV07T8MwELagEyxAKeItD6xOk9S1kxGVVhUSiIFK3So_zlKF2qCSDvDrOdtpeYiBLY8hipXcfXf-vu8IuVHaOIW4lmmpLeMYG5kypWVGmLIvM6dlsGt6eBTjCb-f9qeNz3bQwgBAIJ9B4g_DXr6tzNq3yrrC78FhqbOLdVuUam3bKalX5_rM2AThIo3blFiOsDzPRKjYixRjdiHzxnhncy4ay58sLbuDu4EX8MkkPuvHzJWQckYHUcv9FpwKPdPkJVnXOjEfv3wc__k2h6Tzpe2jT9usdUR2YNkm-99sCY_J8JYGm0tm47h62pC4FniXbkzIaV3RVeCfworOA3W9Wr3TxZZO0yGT0fB5MGbNuAU2RxRTMwmF0yI3ioPIQDjnR9gYhb9sr8-Fk4pbKUE6BBEWUYTjKjdYxoKQfnyxTnsnpLWslnBKqHR5yVMFWE8CLwEhTFFqB94k2IrM2TPS9usxe42OGrO4FOd_Xr0ge9Ey1rc9LkmrXq3hCoFAra_DJ_AJXlKsEg
linkProvider IEEE
linkToHtml http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwjV07T8MwELYQDMAClCLeeGB1mqSOnYyotCrQVgyt1K2ynbNUoTYopAP8evxIy0MMbHkMUazk7rvz932H0K2QSguDa4nkMifUxEYiVJYTxVSW8EhL7uyahiPWn9DHaTKtfbadFgYAHPkMAnvo9vLzQq1sq6zF7B6cKXV2TNpPIi_W2jRUQqvPtbmxDsNp6DcqTUFC4jhirmZPQxO1Ux7X1jvrc1ab_kRh1urcd6yEjwf-aT-mrrik0zvwau4351VouSYvwaqSgfr45eT4z_c5RM0vdR9-3uStI7QFywba_2ZMeIy6d9gZXZLcD6zHNY1rYe7itQ05rgpcOgYqlHjuyOtF-Y4XG0JNE0163XGnT-qBC2RucExFOKRaslgJCiwCprUdYqOE-WnbCWWaC5pzDlwbGJEbHKGpiJUpZIFxO8BYhu0TtL0slnCKMNdxRkMBpqIEmoEBMWkmNVib4JxFOj9DDbses1fvqTHzS3H-59UbtNsfDwezwcPo6QLteQNZ2wS5RNtVuYIrAwsqee0-h0-QEK9b
openUrl ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=proceeding&rft.title=Proceedings+of+the+36th+IEEE+Conference+on+Decision+and+Control&rft.atitle=A+neuro-dynamic+programming+approach+to+retailer+inventory+management&rft.au=Van+Roy%2C+B.&rft.au=Bertsekas%2C+D.P.&rft.au=Lee%2C+Y.&rft.au=Tsitsiklis%2C+J.N.&rft.date=1997-01-01&rft.pub=IEEE&rft.isbn=9780780341876&rft.issn=0191-2216&rft.volume=4&rft.spage=4052&rft.epage=4057+vol.4&rft_id=info:doi/10.1109%2FCDC.1997.652501&rft.externalDocID=652501
thumbnail_l http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/lc.gif&issn=0191-2216&client=summon
thumbnail_m http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/mc.gif&issn=0191-2216&client=summon
thumbnail_s http://covers-cdn.summon.serialssolutions.com/index.aspx?isbn=/sc.gif&issn=0191-2216&client=summon