Reinforcement Learning for Efficient Returns Management

Fuente: arXiv
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Autores principales: Linden, Pascal, Paul, Nathalie, Wirtz, Tim, Wrobel, Stefan
Formato: Preprint
Publicado: 2025
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author Linden, Pascal
Paul, Nathalie
Wirtz, Tim
Wrobel, Stefan
author_facet Linden, Pascal
Paul, Nathalie
Wirtz, Tim
Wrobel, Stefan
contents In retail warehouses, returned products are typically placed in an intermediate storage until a decision regarding further shipment to stores is made. The longer products are held in storage, the higher the inefficiency and costs of the returns management process, since enough storage area has to be provided and maintained while the products are not placed for sale. To reduce the average product storage time, we consider an alternative solution where reallocation decisions for products can be made instantly upon their arrival in the warehouse allowing only a limited number of products to still be stored simultaneously. We transfer the problem to an online multiple knapsack problem and propose a novel reinforcement learning approach to pack the items (products) into the knapsacks (stores) such that the overall value (expected revenue) is maximized. Empirical evaluations on simulated data demonstrate that, compared to the usual offline decision procedure, our approach comes with a performance gap of only 3% while significantly reducing the average storage time of a product by 96%.
format Preprint
id arxiv_https___arxiv_org_abs_2501_14394
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Reinforcement Learning for Efficient Returns Management
Linden, Pascal
Paul, Nathalie
Wirtz, Tim
Wrobel, Stefan
Machine Learning
In retail warehouses, returned products are typically placed in an intermediate storage until a decision regarding further shipment to stores is made. The longer products are held in storage, the higher the inefficiency and costs of the returns management process, since enough storage area has to be provided and maintained while the products are not placed for sale. To reduce the average product storage time, we consider an alternative solution where reallocation decisions for products can be made instantly upon their arrival in the warehouse allowing only a limited number of products to still be stored simultaneously. We transfer the problem to an online multiple knapsack problem and propose a novel reinforcement learning approach to pack the items (products) into the knapsacks (stores) such that the overall value (expected revenue) is maximized. Empirical evaluations on simulated data demonstrate that, compared to the usual offline decision procedure, our approach comes with a performance gap of only 3% while significantly reducing the average storage time of a product by 96%.
title Reinforcement Learning for Efficient Returns Management
topic Machine Learning
url https://arxiv.org/abs/2501.14394