Closing the Loop: Coordinating Inventory and Recommendation via Deep Reinforcement Learning on Multiple Timescales

Fuente: arXiv
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Main Authors: Jiang, Jinyang, Han, Jinhui, Peng, Yijie, Zhang, Ying
Format: Preprint
Published: 2025
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author Jiang, Jinyang
Han, Jinhui
Peng, Yijie
Zhang, Ying
author_facet Jiang, Jinyang
Han, Jinhui
Peng, Yijie
Zhang, Ying
contents Effective cross-functional coordination is essential for enhancing firm-wide profitability, particularly in the face of growing organizational complexity and scale. Recent advances in artificial intelligence, especially in reinforcement learning (RL), offer promising avenues to address this fundamental challenge. This paper proposes a unified multi-agent RL framework tailored for joint optimization across distinct functional modules, exemplified via coordinating inventory replenishment and personalized product recommendation. We first develop an integrated theoretical model to capture the intricate interplay between these functions and derive analytical benchmarks that characterize optimal coordination. The analysis reveals synchronized adjustment patterns across products and over time, highlighting the importance of coordinated decision-making. Leveraging these insights, we design a novel multi-timescale multi-agent RL architecture that decomposes policy components according to departmental functions and assigns distinct learning speeds based on task complexity and responsiveness. Our model-free multi-agent design improves scalability and deployment flexibility, while multi-timescale updates enhance convergence stability and adaptability across heterogeneous decisions. We further establish the asymptotic convergence of the proposed algorithm. Extensive simulation experiments demonstrate that the proposed approach significantly improves profitability relative to siloed decision-making frameworks, while the behaviors of the trained RL agents align closely with the managerial insights from our theoretical model. Taken together, this work provides a scalable, interpretable RL-based solution to enable effective cross-functional coordination in complex business settings.
format Preprint
id arxiv_https___arxiv_org_abs_2510_04272
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Closing the Loop: Coordinating Inventory and Recommendation via Deep Reinforcement Learning on Multiple Timescales
Jiang, Jinyang
Han, Jinhui
Peng, Yijie
Zhang, Ying
Artificial Intelligence
Machine Learning
Optimization and Control
Effective cross-functional coordination is essential for enhancing firm-wide profitability, particularly in the face of growing organizational complexity and scale. Recent advances in artificial intelligence, especially in reinforcement learning (RL), offer promising avenues to address this fundamental challenge. This paper proposes a unified multi-agent RL framework tailored for joint optimization across distinct functional modules, exemplified via coordinating inventory replenishment and personalized product recommendation. We first develop an integrated theoretical model to capture the intricate interplay between these functions and derive analytical benchmarks that characterize optimal coordination. The analysis reveals synchronized adjustment patterns across products and over time, highlighting the importance of coordinated decision-making. Leveraging these insights, we design a novel multi-timescale multi-agent RL architecture that decomposes policy components according to departmental functions and assigns distinct learning speeds based on task complexity and responsiveness. Our model-free multi-agent design improves scalability and deployment flexibility, while multi-timescale updates enhance convergence stability and adaptability across heterogeneous decisions. We further establish the asymptotic convergence of the proposed algorithm. Extensive simulation experiments demonstrate that the proposed approach significantly improves profitability relative to siloed decision-making frameworks, while the behaviors of the trained RL agents align closely with the managerial insights from our theoretical model. Taken together, this work provides a scalable, interpretable RL-based solution to enable effective cross-functional coordination in complex business settings.
title Closing the Loop: Coordinating Inventory and Recommendation via Deep Reinforcement Learning on Multiple Timescales
topic Artificial Intelligence
Machine Learning
Optimization and Control
url https://arxiv.org/abs/2510.04272