Action reward, a framework for inventory optimization


00:05 Introduction
00:23 The inventory control problem
00:54 An uncertain demand
01:44 Choosing a model and a reward function
03:20 Single-period inventory control
04:09 Quantifying the order decisions 12
06:23 Quantifying the order decisions 22
07:39 Multi-period inventory control
10:55 Quantifying the order decisions 14
12:05 Quantifying the order decisions 24
13:22 Quantifying the order decisions 34
14:41 Quantifying the order decisions 44
15:21 Action reward implementation in Envision
16:37 Envision plot of the action reward
17:12 Limited budget: Optimizing ROI
19:47 Envision code example
20:23 Prioritized purchase list
21:20 Conclusion

Description

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.