• Lokad
  • 3 жыл бұрын
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Action reward, a framework for inventory optimization

Ғылым және технология

The action reward is a vast generalization of the newsvendor problem featuring: nonstationary demand, incoming purchase orders, lead times, halfway through stockouts, future decisions and more.
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Technical documentation: docs.lokad.com/reference/abc/...
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Timestamps:
0:00:05 - Introduction
0:00:23 - The inventory control problem
0:00:54 - An uncertain demand
0:01:44 - Choosing a model and a reward function
0:03:20 - Single-period inventory control
0:04:09 - Quantifying the order decisions 1/2
0:06:23 - Quantifying the order decisions 2/2
0:07:39 - Multi-period inventory control
0:10:55 - Quantifying the order decisions 1/4
0:12:05 - Quantifying the order decisions 2/4
0:13:22 - Quantifying the order decisions 3/4
0:14:41 - Quantifying the order decisions 4/4
0:15:21 - Action reward implementation in Envision
0:16:37 - Envision plot of the action reward
0:17:12 - Limited budget: Optimizing ROI
0:19:47 - Envision code example
0:20:23 - Prioritized purchase list
0:21:20 - Conclusion

Пікірлер: 4

  • @dijin7343
    @dijin73436 ай бұрын

    Thanks for sharing! Like the video and concept very much. I just wonder how to we take ordering cost into account in this framework. Suppose there are two replenishment options: Option I: restock 10 every two reorder time cycles Option II: restock 5 every one reorder time cycles Suppose both options can cover the demand. This rewards function will prefer Option II instead of Option I. But if we take the ordering (shipment...) cost into account, Option I might be the right Option. Could you please comment on that? Thanks!

  • @Lokad

    @Lokad

    2 ай бұрын

    Thanks for the kind word! The 'action reward' can end-up favoring either of the two options depending on the probability distribution of the demand. Indeed, if the demand is very dispersed, then, committing to Option II (bigger order) is very risky, as there is a much bigger risk of overstock; hence Option I will be favored if the inventory risk outweights the transport overhead. On the contrary, if the demand is very steady, then, the transport overhead will dominate, and assuming that the stock doesn't rapidly expire either, Option II will be favored. Hope it helps, Joannes

  • @AdolphVogel
    @AdolphVogel3 жыл бұрын

    Interesting concept. How does the lead time uncertainty influence the responsibility window?

  • @Lokad

    @Lokad

    3 жыл бұрын

    Hi! The lead time uncertainty means that the time boundaries of the responsibility window are uncertain as well. If there is a chance that lead time can much longer, it also mean that whatever you order has a chance of servicing a much later period, which incidentally might precisely be the peak season. For example, a Canadian car part reseller might have a usual 3 months lead time to source snow chains, the peak of the demand being in, say, October. However, as there is the chance that the lead time is 6 months instead of 3 months, it means that the window of responsibility - hence the financial reward - starts in May gradually ramping up to July. The action reward will numerically reflects this lead time uncertainty by starting to gradually credit the value of an early order as soon as May. Hope it helps, Joannes

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