ademarteau
metrics: profit first, then service level, then fill rate
39193b5
import json
import os
import re
import gradio as gr
import matplotlib
matplotlib.use("Agg")
import matplotlib.pyplot as plt
import numpy as np
from huggingface_hub import InferenceClient
from config import SIM_DAYS, HISTO_DAYS, LEAD_TIME, UNIT_COST, SELLING_PRICE, FIXED_ORDER_COST, WRITE_OFF_RATE
from agent_environment import BaseAgent, SafetyStockAgent, ForecastAgent, MonteCarloAgent
from demand_environment import GammaPoisson, GammaGammaHighVariance, SpikingDemand, SingleGammaLowVariance
from demand_calculator import DemandCalculator
from order_processor import OrderProcessor
from inventory_manager import InventoryManager
from performance_tracker import PerformanceTracker
ENV_MAP = {
"GammaPoisson (90/10 mixture)": GammaPoisson,
"GammaGamma High Variance (bimodal)": GammaGammaHighVariance,
"Spiking Demand": SpikingDemand,
"Single Gamma Low Variance": SingleGammaLowVariance,
}
DECISION_INTERVAL = 5
LLM_SYSTEM_PROMPT = """You are an expert inventory optimization agent in a stochastic simulation.
Decide the REORDER POINT (ROP) β€” the inventory threshold that triggers a new order.
RULES:
- Orders arrive LEAD_TIME=3 days after placement
- Every 7 days, 1% of inventory is written off
- Goal: fill rate >= 95% at end of episode
OUTPUT β€” respond with this exact JSON (no markdown fences):
{
"subgoals": ["subgoal 1", "subgoal 2"],
"state_analysis": "2-3 sentence analysis",
"recovery_plan": "recovery strategy if fill rate < 95%",
"reorder_point": <number>,
"confidence": "high|medium|low"
}"""
# ── Shared chart builder ───────────────────────────────────────────────────────
def build_chart(daily_inventory, running_fill_rate, rop_markers, title, daily_pnl=None):
n_rows = 3 if daily_pnl else 2
fig, axes = plt.subplots(n_rows, 1, figsize=(10, 4 + 2.5 * n_rows), sharex=True)
ax1, ax2 = axes[0], axes[1]
days = list(range(len(daily_inventory)))
ax1.plot(days, daily_inventory, color="steelblue", linewidth=0.8)
if rop_markers:
rop_days, rop_vals = zip(*rop_markers)
ax1.scatter([d - HISTO_DAYS for d in rop_days], rop_vals,
color="orange", s=20, zorder=5, label="ROP set")
ax1.legend(fontsize=8)
ax1.set_ylabel("Inventory Level")
ax1.set_title(title)
ax2.plot(days, running_fill_rate, color="seagreen", linewidth=0.8)
ax2.axhline(y=0.95, color="red", linestyle="--", linewidth=0.6, label="95% target")
ax2.set_ylabel("Cumulative Fill Rate")
ax2.set_ylim(0, 1)
ax2.legend(fontsize=8)
if daily_pnl:
ax3 = axes[2]
revenues = [r["revenue"] for r in daily_pnl]
holding_costs = [r["holding_cost"] for r in daily_pnl]
stockout_pens = [r["stockout_penalty"] for r in daily_pnl]
order_costs = [r["order_cost"] for r in daily_pnl]
writeoff_costs = [r["writeoff_cost"] for r in daily_pnl]
net_profits = [r["daily_profit"] for r in daily_pnl]
ax3.fill_between(days, revenues, alpha=0.25, color="green", label="Revenue")
ax3.plot(days, net_profits, color="black", linewidth=0.9, label="Net profit")
ax3.fill_between(days, [-h for h in holding_costs], alpha=0.3, color="royalblue", label="Holding cost")
ax3.fill_between(days, [-s for s in stockout_pens], alpha=0.3, color="crimson", label="Stockout penalty")
ax3.fill_between(days, [-o for o in order_costs], alpha=0.25, color="darkorange", label="Order cost")
ax3.fill_between(days, [-w for w in writeoff_costs], alpha=0.25, color="purple", label="Write-off cost")
ax3.axhline(y=0, color="grey", linewidth=0.5)
ax3.set_ylabel("Daily P&L ($)")
ax3.set_xlabel("Evaluation Day")
ax3.legend(fontsize=7, ncol=3)
else:
ax2.set_xlabel("Evaluation Day")
plt.tight_layout()
return fig
# ── Tab 1: Baseline agents ─────────────────────────────────────────────────────
def run_simulation(agent_name, env_name):
env_class = ENV_MAP[env_name]
environment = env_class(SIM_DAYS)
dc = DemandCalculator(SIM_DAYS)
dc.set_environment(environment)
for i in range(SIM_DAYS):
dc.get_daily_demand(i)
demand_mean = [d.demand_mean for d in dc.daily_demand_distribution]
demand_std = [d.demand_std for d in dc.daily_demand_distribution]
agent_map = {
"Base (Historical Mean)": BaseAgent(dc),
"Safety Stock": SafetyStockAgent(dc),
"Forecast": ForecastAgent(dc, demand_mean, demand_std),
"Monte Carlo": MonteCarloAgent(dc),
}
agent = agent_map[agent_name]
order_processor = OrderProcessor()
performance_tracker = PerformanceTracker()
inventory_manager = InventoryManager(order_processor=order_processor, agent=agent)
daily_inventory, running_fill_rate, daily_pnl = [], [], []
total_demand, total_fulfilled = 0, 0
for day in range(HISTO_DAYS, SIM_DAYS):
demand_qty = dc.get_daily_demand(day)
base_inv = inventory_manager.inventory
inventory_manager.inventory_update(demand_qty)
q_before = len(order_processor.order_queue)
if day < SIM_DAYS - LEAD_TIME:
inventory_manager.reorder(day)
new_orders = order_processor.order_queue[q_before:]
ordered_qty = sum(o.quantity for o in new_orders)
inventory_manager.process_deliveries(day)
fulfilled = min(demand_qty, base_inv)
daily_writeoff = inventory_manager.apply_writeoff(day)
total_demand += demand_qty
total_fulfilled += fulfilled
performance_tracker.daily_performance(demand_qty, int(fulfilled), daily_writeoff)
daily_inventory.append(inventory_manager.inventory)
running_fill_rate.append(total_fulfilled / total_demand if total_demand > 0 else 0)
lost = max(0, demand_qty - fulfilled)
revenue = fulfilled * SELLING_PRICE
holding_cost = inventory_manager.inventory * UNIT_COST * 0.005
stockout_penalty = lost * (SELLING_PRICE - UNIT_COST)
order_cost = (FIXED_ORDER_COST if ordered_qty > 0 else 0.0) + ordered_qty * UNIT_COST
writeoff_cost = daily_writeoff * UNIT_COST
daily_pnl.append({
"revenue": revenue,
"holding_cost": holding_cost,
"stockout_penalty": stockout_penalty,
"order_cost": order_cost,
"writeoff_cost": writeoff_cost,
"daily_profit": revenue - holding_cost - stockout_penalty - order_cost - writeoff_cost,
})
summary = performance_tracker.performance_summary()
total_profit = sum(d["daily_profit"] for d in daily_pnl)
days_elapsed = len(daily_pnl)
service_level = (days_elapsed - summary['stock_out_count']) / days_elapsed if days_elapsed > 0 else 0.0
fig = build_chart(daily_inventory, running_fill_rate, [], f"{agent_name} | {env_name}", daily_pnl)
metrics = (
f"**Total Profit:** ${total_profit:,.0f} \n"
f"**Service Level:** {service_level:.2%} \n"
f"**Fill Rate:** {summary['fill_rate']:.2%} \n"
f"**Stockouts:** {summary['stock_out_count']} \n"
f"**Lost Sales:** {summary['total_lost_sales']:.0f} \n"
f"**Write-offs:** {summary['write_offs']:.0f}"
)
return fig, metrics
# ── Tab 2: LLM agent (live) ────────────────────────────────────────────────────
def _parse_decision(raw: str, fallback_rop: float) -> dict:
try:
cleaned = re.sub(r"```json|```", "", raw).strip()
return json.loads(cleaned)
except (json.JSONDecodeError, ValueError):
match = re.search(r'"reorder_point"\s*:\s*(\d+\.?\d*)', raw)
return {
"subgoals": ["parse error"],
"state_analysis": raw[:150],
"recovery_plan": "N/A",
"reorder_point": float(match.group(1)) if match else fallback_rop,
"confidence": "low",
}
def run_llm_simulation(env_name, hf_token):
env_class = ENV_MAP[env_name]
environment = env_class(SIM_DAYS)
dc = DemandCalculator(SIM_DAYS)
dc.set_environment(environment)
for i in range(SIM_DAYS):
dc.get_daily_demand(i)
order_processor = OrderProcessor()
performance_tracker = PerformanceTracker()
inventory_manager = InventoryManager(
order_processor=order_processor,
agent=BaseAgent(dc), # placeholder; we override ROP manually
)
client = InferenceClient(token=hf_token or os.environ.get("HF_TOKEN"))
convo_history = []
memory_bank = []
current_rop = dc.daily_demand_distribution[HISTO_DAYS].demand_mean * LEAD_TIME
daily_inventory, running_fill_rate, rop_markers, daily_pnl = [], [], [], []
total_demand, total_fulfilled = 0, 0
decision_log = []
for day in range(HISTO_DAYS, SIM_DAYS):
demand_qty = dc.get_daily_demand(day)
base_inv = inventory_manager.inventory
inventory_manager.inventory_update(demand_qty)
# Manual reorder using current_rop
ordered_qty = 0
if day < SIM_DAYS - LEAD_TIME and inventory_manager.inventory <= current_rop:
hist = [dc.daily_demand_distribution[d].actual_demand
for d in range(max(0, day - 30), day)]
mean_d = sum(hist) / len(hist) if hist else current_rop / LEAD_TIME
qty = max(0, current_rop - inventory_manager.inventory + mean_d * LEAD_TIME)
if qty > 0:
order_processor.place_order(day, int(qty))
ordered_qty = qty
inventory_manager.process_deliveries(day)
fulfilled = min(demand_qty, base_inv)
daily_writeoff = inventory_manager.apply_writeoff(day)
total_demand += demand_qty
total_fulfilled += fulfilled
performance_tracker.daily_performance(demand_qty, int(fulfilled), daily_writeoff)
daily_inventory.append(inventory_manager.inventory)
fr = total_fulfilled / total_demand if total_demand > 0 else 0
running_fill_rate.append(fr)
lost = max(0, demand_qty - fulfilled)
revenue = fulfilled * SELLING_PRICE
holding_cost = inventory_manager.inventory * UNIT_COST * 0.005
stockout_penalty = lost * (SELLING_PRICE - UNIT_COST)
order_cost = (FIXED_ORDER_COST if ordered_qty > 0 else 0.0) + ordered_qty * UNIT_COST
writeoff_cost = daily_writeoff * UNIT_COST
daily_pnl.append({
"revenue": revenue,
"holding_cost": holding_cost,
"stockout_penalty": stockout_penalty,
"order_cost": order_cost,
"writeoff_cost": writeoff_cost,
"daily_profit": revenue - holding_cost - stockout_penalty - order_cost - writeoff_cost,
})
# LLM decision every DECISION_INTERVAL days
if (day - HISTO_DAYS) % DECISION_INTERVAL == 0 and day < SIM_DAYS - LEAD_TIME:
hist30 = [dc.daily_demand_distribution[d].actual_demand
for d in range(max(0, day - 30), day)]
snapshot = {
"day": day, "days_remaining": SIM_DAYS - day,
"current_inventory": round(inventory_manager.inventory, 1),
"demand_mean_30d": round(sum(hist30) / len(hist30), 1) if hist30 else 0,
"fill_rate_so_far": f"{fr*100:.1f}%",
"recent_stockouts": performance_tracker.stock_out_count,
"lead_time": LEAD_TIME,
}
if memory_bank:
snapshot["memory"] = memory_bank[-6:]
user_msg = (
f"Day {day}/{SIM_DAYS}\n{json.dumps(snapshot, indent=2)}\n\n"
f"Set reorder_point for the next {DECISION_INTERVAL} days."
)
messages = [
{"role": "system", "content": LLM_SYSTEM_PROMPT},
*convo_history[-6:],
{"role": "user", "content": user_msg},
]
try:
resp = client.chat.completions.create(
model="Qwen/Qwen2.5-72B-Instruct",
messages=messages,
max_tokens=600,
)
raw = resp.choices[0].message.content
decision = _parse_decision(raw, current_rop)
current_rop = max(0.0, decision["reorder_point"])
convo_history = [*convo_history[-5:],
{"role": "user", "content": user_msg},
{"role": "assistant", "content": raw}]
memory_bank = [*memory_bank[-7:], {
"day": day, "rop": round(current_rop, 1),
"fill_rate": f"{fr*100:.1f}%",
"confidence": decision.get("confidence", "?"),
}]
rop_markers.append((day, current_rop))
conf = decision.get("confidence", "?")
analysis = decision.get("state_analysis", "")[:80]
decision_log.append(
f"**Day {day}** | ROP={current_rop:.0f} | Fill={fr*100:.1f}% "
f"| [{conf}] {analysis}"
)
except Exception as e:
decision_log.append(f"**Day {day}** | API error: {str(e)[:60]}")
# Yield live update
fig = build_chart(daily_inventory, running_fill_rate, rop_markers,
f"Qwen2.5-72B | {env_name} | Day {day}/{SIM_DAYS}", daily_pnl)
summary = performance_tracker.performance_summary()
total_profit = sum(d["daily_profit"] for d in daily_pnl)
days_elapsed = len(daily_pnl)
service_level = (days_elapsed - summary['stock_out_count']) / days_elapsed if days_elapsed > 0 else 0.0
metrics = (
f"**Total Profit:** ${total_profit:,.0f} \n"
f"**Service Level:** {service_level:.2%} \n"
f"**Fill Rate:** {summary['fill_rate']:.2%} \n"
f"**Stockouts:** {summary['stock_out_count']} \n"
f"**Lost Sales:** {summary['total_lost_sales']:.0f} \n"
f"**Write-offs:** {summary['write_offs']:.0f} \n"
f"**Decisions:** {len(decision_log)}"
)
log_md = "\n\n".join(decision_log[-20:])
yield fig, metrics, log_md
# Final yield
fig = build_chart(daily_inventory, running_fill_rate, rop_markers,
f"Qwen2.5-72B | {env_name} | COMPLETE", daily_pnl)
summary = performance_tracker.performance_summary()
total_profit = sum(d["daily_profit"] for d in daily_pnl)
days_elapsed = len(daily_pnl)
service_level = (days_elapsed - summary['stock_out_count']) / days_elapsed if days_elapsed > 0 else 0.0
metrics = (
f"**Total Profit:** ${total_profit:,.0f} \n"
f"**Service Level:** {service_level:.2%} \n"
f"**Fill Rate:** {summary['fill_rate']:.2%} \n"
f"**Stockouts:** {summary['stock_out_count']} \n"
f"**Lost Sales:** {summary['total_lost_sales']:.0f} \n"
f"**Write-offs:** {summary['write_offs']:.0f} \n"
f"**Decisions:** {len(decision_log)}"
)
yield fig, metrics, "\n\n".join(decision_log)
# ── UI ─────────────────────────────────────────────────────────────────────────
with gr.Blocks(title="Inventory Simulation") as demo:
gr.Markdown("# Inventory Optimization: Agent Comparison")
with gr.Tabs():
with gr.Tab("Baseline Agents"):
gr.Markdown("Run one of the 4 rule-based agents through a full 365-day simulation.")
with gr.Row():
agent_dd = gr.Dropdown(
choices=["Base (Historical Mean)", "Safety Stock", "Forecast", "Monte Carlo"],
value="Safety Stock", label="Agent",
)
env_dd = gr.Dropdown(
choices=list(ENV_MAP.keys()),
value="GammaPoisson (90/10 mixture)", label="Demand Environment",
)
run_btn = gr.Button("Run Simulation", variant="primary")
with gr.Row():
chart = gr.Plot(label="Results")
metrics_md = gr.Markdown(label="Metrics")
run_btn.click(run_simulation, inputs=[agent_dd, env_dd], outputs=[chart, metrics_md])
with gr.Tab("LLM Agent β€” Live"):
gr.Markdown(
"Qwen2.5-72B makes a reorder decision every 5 days. "
"Chart and log update in real-time as the simulation runs."
)
with gr.Row():
llm_env_dd = gr.Dropdown(
choices=list(ENV_MAP.keys()),
value="GammaPoisson (90/10 mixture)", label="Demand Environment",
)
hf_token_box = gr.Textbox(
label="HF Token (optional if HF_TOKEN env var is set)",
type="password", placeholder="hf_...",
)
llm_run_btn = gr.Button("Run LLM Simulation", variant="primary")
with gr.Row():
llm_chart = gr.Plot(label="Live Simulation")
with gr.Column():
llm_metrics = gr.Markdown(label="Metrics")
llm_log = gr.Markdown(label="Decision Log")
llm_run_btn.click(
run_llm_simulation,
inputs=[llm_env_dd, hf_token_box],
outputs=[llm_chart, llm_metrics, llm_log],
)
demo.launch(server_name=os.environ.get("GRADIO_SERVER_NAME", "127.0.0.1"))