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Feature: Multi-period optimization with inventory dynamics #6

@chripiermarini

Description

@chripiermarini

Description

The current optimization model is single-period and operates on aggregated (average) demand.
While useful as a first approximation, this approach ignores temporal dynamics and does not capture how demand evolves over time.

The goal of this issue is to extend the model to a multi-period optimization framework that explicitly incorporates time and inventory carry-over.


Goals

  • Introduce a time dimension into the optimization model
  • Track inventory across periods
  • Capture demand variability over time
  • Move from steady-state optimization to dynamic decision-making

Proposed Model Extension

Decision variables

  • flow[o, d, t]: flow from origin o to destination d at time t
  • inventory[d, t]: inventory at destination d at time t

Constraints

  • Inventory balance: inventory[d, t] = inventory[d, t-1] + inflow[d, t] - demand[d, t]

  • Capacity constraints per origin and time period:

  • Flows from each origin cannot exceed its capacity at each time step

  • Non-negativity constraints:

  • All flows and inventory levels must be ≥ 0

Objective

  • Minimize total transportation cost across all periods
  • (Optional) Include inventory holding costs

Acceptance Criteria

  • Multi-period optimization model implemented (OR-Tools or equivalent)
  • Supports time-indexed demand as input
  • Inventory carry-over correctly modeled across periods
  • Clean interface between forecasting output (time series) and optimization input
  • Optional: fallback to single-period model remains available

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