 Data-driven inventory control for large product portfolios: A practical application of prescriptive analyticsFelix G. Schmidt and Richard Pibernik European Journal of Operational Research, 2025, vol. 322, issue 1, 254-269 Abstract: Motivated by the real-world inventory management problem of a large network of pharmacies, this paper proposes and studies a practically relevant Prescriptive Analytics approach for data-driven dynamic inventory control of large portfolios of interrelated products. We extend existing research on weighted Sample Average Approximation by integrating a ‘global learning’ model that effectively exploits cross-learning opportunities within the product portfolio. The results of an extensive numerical evaluation on real-world data suggest that our approach outperforms relevant benchmarks—in particular, models that rely on ‘local learning’ strategies where weight functions are trained separately for each product. The numerical results also allow us to derive important practical and structural insights regarding the value of contextual information in our global learning framework. Keywords: Dynamic inventory control; Prescriptive analytics; Machine learning; Cross-learning (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:322:y:2025:i:1:p:254-269 DOI: 10.1016/j.ejor.2024.10.012 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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