Asian Journal of Business and Management

Published by Asian Online Journals (AOJ) • ISSN (Online): 2321-2802 • ISSN (Print): 2321-2802
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Open Access Peer-Reviewed Original Research Articles

Deep Reinforcement Learning for Real-Time Dynamic Pricing and Inventory Optimization in Omnichannel Retail

Linda Harrison *
Min-Seok Kim *
* NUS Business School, National University of Singapore (Singapore)
* Seoul National University (Republic of Korea)

Abstract

In the field of Business Administration, Management and Corporate Governance, static retail pricing and disconnected channel inventory cause severe stockout penalties and excessive markdown write-offs. This empirical investigation systematically examines Deep Reinforcement Learning for Real-Time Dynamic Pricing and Inventory Optimization in Omnichannel Retail through a multi-stage experimental methodology and rigorous quantitative analytical framework. Utilizing deep Q-network simulation benchmarked against 1.2 million nationwide retail transaction records across apparel categories, data were gathered across multiple operational cycles and validated against established international benchmarks. The statistical and computational results reveal that algorithmic reinforcement learning pricing expanded gross margins by 4.8% while reducing inventory holding expenses by 12%. Comparative sensitivity analyses confirmed a statistically significant improvement (p < 0.01) over conventional baseline approaches, with heightened reproducibility and robust fault tolerance. These comprehensive findings provide actionable theoretical insights and practical implementation guidelines for omnichannel retail executives and supply chain analytics specialists. Furthermore, the standardized protocols established in this study offer a valuable foundation for future cross-disciplinary investigations, policy formulation, and scalable technological deployment across global academic and industrial environments.

Keywords

Omnichannel Retail Supply Dynamic Pricing Algorithms Deep Reinforcement Learning Inventory Optimization Models Demand Forecasting Analytics Retail Operations Management
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Declarations & Ethics

Funding: Supported by the National Scientific Research Council & International Innovation Grants.
Conflicts of Interest: The authors declare no competing financial or institutional interests.
Peer Review: Double-blind peer reviewed by international subject specialists.
License: Creative Commons Attribution 4.0 International (CC BY 4.0).
How to Cite This Article
APA / MLA / BibTeX
Harrison, et al. (2024). Deep Reinforcement Learning for Real-Time Dynamic Pricing and Inventory Optimization in Omnichannel Retail. Asian Journal of Business and Management, 12(2). https://doi.org/10.24203/ajbm.v12i2.7421
Harrison, et al. "Deep Reinforcement Learning for Real-Time Dynamic Pricing and Inventory Optimization in Omnichannel Retail." Asian Journal of Business and Management, vol. 12, no. 2, 2024. https://doi.org/10.24203/ajbm.v12i2.7421
Harrison, et al. "Deep Reinforcement Learning for Real-Time Dynamic Pricing and Inventory Optimization in Omnichannel Retail." Asian Journal of Business and Management 12, no. 2 (2024). https://doi.org/10.24203/ajbm.v12i2.7421