Gyan Prakash

Amandeep Kaur, Gyan Prakash

Pharmaceutical supply chains (PSCs) struggle with inventory management (IM) due to unpredictable demand patterns and variable lead times associated with restocking. This complexity is further compounded by the finite shelf lives of pharmaceutical products, which necessitate a delicate balance between adequate stock and minimal waste. These intertwined factors create a complex optimization problem that requires sophisticated inventory strategies to ensure both product availability and PSC efficiency. This study aims to develop an optimal inventory replenishment policy for pharmaceutical products that can handle the stochasticity arising from uncertain demand and variable PSC conditions. The objective is to maximize the profitability of the PSC while maintaining a high patient service level. We formulate the problem as a Markov decision process and propose a deep reinforcement learning (DRL) approach, specifically, a hybrid asynchronous advantage actor critic distributed proximal policy optimization (A3C DPPO)algorithm. The A3C DPPO algorithm is tailored to handle the continuous action space inherent in IM. The numerical results demonstrate that the proposed algorithm adaptively updates the inventory replenishment strategy under dynamic scenarios, resulting in lower inventory costs compared to various benchmarks. We also conduct numerical validation using real-world pharmaceutical inventory data to confirm the practical feasibility of the proposed algorithm.

Amandeep Kaur, Gyan Prakash

Agricultural products are often subject to seasonal fluctuations in production and demand. Predicting and managing inventory levels in response to these variations can be challenging, leading to either excess inventory or stockouts. Additionally, the coordination among stakeholders at various level of food supply chain is not considered in the existing body of literature. To bridge these research gaps, this study focuses on inventory management of agri-food products under demand and lead time uncertainties. By implementing effective inventory replenishment policy results in maximize the overall profit throughout the supply chain. However, the complexity of the problem increases due to these uncertainties and shelf-life of the product, that makes challenging to implement traditional approaches to generate optimal set of solutions. Thus, the current study propose a novel Deep Reinforcement Learning (DRL) algorithm that combines the benefits of both value- and policy-based DRL approaches for inventory optimization under uncertainties. The proposed algorithm can incentivize collaboration among stakeholders by aligning their interests and objectives through shared optimization goal of maximizing profitability along the agri-food supply chain while considering perishability, and uncertainty simultaneously. By selecting optimal order quantities with continuous action space, the proposed algorithm effectively addresses the inventory optimization challenges. To rigorously evaluate this algorithm, the empirical data from fresh agricultural products supply chain inventory is considered. Experimental results corroborate the improved performance of the proposed inventory replenishment policy under stochastic demand patterns and lead time scenarios. The research findings hold managerial implications for policymakers to manage the inventory of agricultural products more effectively under uncertainty.