Data-Driven Dynamic Pricing for Mitigating the Hockey Stick Effect: A Hybrid Forecasting and Actor-Critic Reinforcement Learning Framework

The demand for the fabric warehouse presents obvious characteristics of hockey stick effect. This leads to problems such as peak congestion and labor shortages during its operation. In order to alleviate this phenomenon, we propose a combination strategy that uses a SARIMA–Markov hybrid model for demand forecasting, and then applies Actor-Critic reinforcement learning for dynamic pricing. This model integrates SARIMA with Markov chains for residual correction, capturing linear trends and seasonal patterns while correcting residuals, yielding more accurate predictions for highly volatile demand in textile logistics. Experimental results indicate that our approach achieves better performance than SARIMA, Temporal Fusion Transformer (TFT), and Ensemble, especially in identifying and reproducing sharp demand peaks. By combining forecasting results with price elasticity, the proposed dynamic pricing scheme cuts peak-hour demand by 12.54%, which in turn eases pressure on labor scheduling and boosts the efficiency of workforce allocation. This work offers a data-driven approach to flattening demand fluctuations via intelligent pricing, improves operational efficiency without requiring extra hardware investment, and provides a practical response to a long-standing bottleneck in the textile logistics sector.

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Publication Details

Journal
Algorithms
Published
2026-05-11
DOI
https://doi.org/10.3390/a19050382
Primary Topic
Forecasting Techniques and Applications
Type
article
Field-Weighted Citation Impact
0.00

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article

Data-Driven Dynamic Pricing for Mitigating the Hockey Stick Effect: A Hybrid Forecasting and Actor-Critic Reinforcement Learning Framework

Fang Zhu, Dandan Wang, Shanshan Peng
Algorithms
Forecasting Techniques and Applications
article

Data-Driven Dynamic Pricing for Mitigating the Hockey Stick Effect: A Hybrid Forecasting and Actor-Critic Reinforcement Learning Framework

Fang Zhu, Dandan Wang, Shanshan Peng
article en

Abstract

The demand for the fabric warehouse presents obvious characteristics of hockey stick effect. This leads to problems such as peak congestion and labor shortages during its operation. In order to alleviate this phenomenon, we propose a combination strategy that uses a SARIMA–Markov hybrid model for demand forecasting, and then applies Actor-Critic reinforcement learning for dynamic pricing. This model integrates SARIMA with Markov chains for residual correction, capturing linear trends and seasonal patterns while correcting residuals, yielding more accurate predictions for highly volatile demand in textile logistics. Experimental results indicate that our approach achieves better performance than SARIMA, Temporal Fusion Transformer (TFT), and Ensemble, especially in identifying and reproducing sharp demand peaks. By combining forecasting results with price elasticity, the proposed dynamic pricing scheme cuts peak-hour demand by 12.54%, which in turn eases pressure on labor scheduling and boosts the efficiency of workforce allocation. This work offers a data-driven approach to flattening demand fluctuations via intelligent pricing, improves operational efficiency without requiring extra hardware investment, and provides a practical response to a long-standing bottleneck in the textile logistics sector.

AlgorithmsVol. 19(5)
Anhui Xinhua University (CN)
Anhui Provincial Department of Education, Anhui Xinhua University
Decent work and economic growth
Openalex Percentile: Top 4%
Forecasting Techniques and Applications
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