Calibrated Quantile Transformers for Cost-Aware Inventory Control in Simulated Multi-Echelon Supply Networks

Accurate demand quantiles do not automatically yield low-cost network inventory decisions. We evaluate a series-aware quantile Transformer linked to a rolling residual correction that shrinks item-specific errors toward pooled calibration residuals. The corrected 0.90 demand quantile drives retailer order-up-to decisions under shared distribution-center supply, with explicit replenishment lead times. To distinguish the value of calibration from forecasting architecture, a LightGBM quantile model and fixed-buffer controls are subjected to the same simulation. 10 independently generated synthetic networks each contain 48 product-store demand series over 176 weeks, and all policies use the same chronological 31-week holdout. Across the networks, the calibrated Transformer lowers average simulated cost by 13.1% relative to static stock and 3.6% relative to its uncalibrated quantiles. The network-paired mean incremental cost reduction is 3.54% with a 95% bootstrap interval [2.33%, 4.78%]. The study isolates decision postprocessing in a controlled simulation rather than making a real-retailer deployment claim.

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Publication Details

Journal
Academic Journal of Management Science and Engineering
Published
2026-11-01
DOI
https://doi.org/10.62051/ajmse.v1n7.14
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
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article

Calibrated Quantile Transformers for Cost-Aware Inventory Control in Simulated Multi-Echelon Supply Networks

Quinn Williams
Academic Journal of Management Science and Engineering
Supply Chain and Inventory Management
article

Calibrated Quantile Transformers for Cost-Aware Inventory Control in Simulated Multi-Echelon Supply Networks

Quinn Williams
article en

Abstract

Accurate demand quantiles do not automatically yield low-cost network inventory decisions. We evaluate a series-aware quantile Transformer linked to a rolling residual correction that shrinks item-specific errors toward pooled calibration residuals. The corrected 0.90 demand quantile drives retailer order-up-to decisions under shared distribution-center supply, with explicit replenishment lead times. To distinguish the value of calibration from forecasting architecture, a LightGBM quantile model and fixed-buffer controls are subjected to the same simulation. 10 independently generated synthetic networks each contain 48 product-store demand series over 176 weeks, and all policies use the same chronological 31-week holdout. Across the networks, the calibrated Transformer lowers average simulated cost by 13.1% relative to static stock and 3.6% relative to its uncalibrated quantiles. The network-paired mean incremental cost reduction is 3.54% with a 95% bootstrap interval [2.33%, 4.78%]. The study isolates decision postprocessing in a controlled simulation rather than making a real-retailer deployment claim.

Academic Journal of Management Science and EngineeringVol. 1(7)
University of California, Riverside (US)
Openalex Percentile: Top 6%
Supply Chain and Inventory Management
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