Evaluating Wasserstein-robust inventory decisions: a five-gate framework and a plant-level coal inventory study

Robust layers on inventory models are costly to build, calibrate and explain, yet whether one changes decisions, or the data support its protection, is rarely asked. Two pre-adoption diagnostics become five ordered gates, exercised in a controlled study and a retrospective plant-level coal benchmark over 35 rolling origins. For a cost-form type-1 Wasserstein program with hinge loss on unbounded support, the worst case adds a decision-free term, leaving prescriptions unchanged; relocating robustness into the service constraint restores sensitivity. Under a common conditional residual law, a uniform cushion minimizes average expected shortfall at a matched budget; a closed-form example shows targeting can win. The layer changed prescriptions yet matched a quantile-plus-cushion policy at equal inventory, and most pile-build targets had no precedent; the controlled study found it worse on both criteria. The gates demonstrate stopping specificity, not sensitivity. Changed prescriptions need not add value; planners should ask these questions before adoption.

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Publication Details

Journal
Journal of Industrial and Production Engineering
Published
2026-11-05
DOI
https://doi.org/10.1080/21681015.2026.2751543
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
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article

Evaluating Wasserstein-robust inventory decisions: a five-gate framework and a plant-level coal inventory study

Masayuki Goto, Tengfei Shao, Kotomichi Matsuno
Journal of Industrial and Production Engineering
Supply Chain and Inventory Management
article

Evaluating Wasserstein-robust inventory decisions: a five-gate framework and a plant-level coal inventory study

Masayuki Goto, Tengfei Shao, Kotomichi Matsuno
article en

Abstract

Robust layers on inventory models are costly to build, calibrate and explain, yet whether one changes decisions, or the data support its protection, is rarely asked. Two pre-adoption diagnostics become five ordered gates, exercised in a controlled study and a retrospective plant-level coal benchmark over 35 rolling origins. For a cost-form type-1 Wasserstein program with hinge loss on unbounded support, the worst case adds a decision-free term, leaving prescriptions unchanged; relocating robustness into the service constraint restores sensitivity. Under a common conditional residual law, a uniform cushion minimizes average expected shortfall at a matched budget; a closed-form example shows targeting can win. The layer changed prescriptions yet matched a quantile-plus-cushion policy at equal inventory, and most pile-build targets had no precedent; the controlled study found it worse on both criteria. The gates demonstrate stopping specificity, not sensitivity. Changed prescriptions need not add value; planners should ask these questions before adoption.

Journal of Industrial and Production Engineering
Waseda University (JP), Rissho University (JP)
Openalex Percentile: Top 13%
Supply Chain and Inventory Management
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