articleEconomics and Management InnovationMar 18, 2026BRONZE OA

Profit-Oriented Production and Pricing Optimization for Manufacturing Enterprises Using Proximal Policy Optimization

PFPingmei FanHLHanwu LiMHMengdie Hu

Nanning Normal University · Amazon (United States) · +2 more institutions

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Abstract

In modern intelligent manufacturing, enterprises face increasingly dynamic market environments where production costs, consumer demand, and pricing strategies interact in complex, nonlinear ways. Traditional static or rule-based decision models fail to capture these interdependencies, often leading to suboptimal profit margins and excessive inventory accumulation. To address this challenge, this study proposes a profit-oriented production and pricing optimization system for manufacturing enterprises based on Proximal Policy Optimization (PPO), an advanced reinforcement learning algorithm well-suited for continuous control and dynamic environments. The proposed system autonomously learns optimal production…

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Authors

3
  • PF
    Pingmei FanCorresponding

    Nanning Normal University

  • HL
    Hanwu Li

    Amazon (United States)

  • MH
    Mengdie Hu

    University of Pennsylvania, Philadelphia University

Topics & keywords

Keywords
  • Dynamic pricing
  • Profitability index
  • Reinforcement learning
  • Markov decision process
  • Profit (economics)
  • Adaptability
  • Production (economics)
  • Pricing strategies
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