Trust-Aware Reinforcement Learning Mechanisms for Dynamic Capacity Sharing in Decentralized Supply Networks

Authors

  • Xiaozhou Tao Department of Computer Science, University of Central Florida, Orlando, FL, USA.
  • Rishi A. Malhotra School of Information Technology, University of Cincinnati, Cincinnati, OH, USA.

Keywords:

Decentralized supply networks; dynamic capacity sharing; trust-aware reinforcement learning; multi-agent systems; governance; fairness

Abstract

Decentralized supply networks have become the dominant architecture for producing and delivering goods, yet they face persistent coordination failures when capacity must be dynamically shared among autonomous firms. Traditional contract-based mechanisms and centralized optimization often prove brittle in the face of demand volatility, information asymmetry, and the absence of enforceable authority. This paper proposes a novel class of trust-aware reinforcement learning mechanisms that enable dynamic capacity sharing by synthesizing multi-agent learning with computational models of inter-organizational trust. We conceptualize trust not as a static binary variable but as a continuously updated, multidimensional representation of a partner’s reliability, reciprocity, and fairness, which directly shapes the reward structures and policy updates of RL agents. The system-level architecture is presented as a hybrid governance layer in which decentralized learning nodes interact through a shared trust ledger, while a lightweight digital coordination layer handles the broadcasting of capacity requests and reputation signals. We examine structural trade-offs between exploration for network efficiency and the preservation of trust capital, highlighting how myopic RL policies erode long-term collaboration potential. The discussion extends to infrastructure requirements for deploying such mechanisms at scale, including the role of industrial data spaces, digital twins for counterfactual training, and regulatory frameworks for algorithmic capacity allocation. Additionally, we analyze fairness and robustness, demonstrating that trust-aware mechanisms can mitigate bullwhip amplification and reduce the frequency of cascading shortages in disrupted supply networks. By integrating computational trust into the RL objective, the proposed mechanisms reframe capacity sharing as a cooperative sequential decision problem in which agents jointly learn to balance self-interest with systemic resilience. We conclude by outlining policy considerations for promoting algorithmic transparency and accountability in autonomous supply networks.

References

1. Choi, T. Y., Dooley, K. J., & Rungtusanatham, M. (2001). Supply networks and complex adaptive systems: control versus emergence. Journal of Operations Management, 19(3), 351–366.

2. Lee, H. L., Padmanabhan, V., & Whang, S. (1997). Information distortion in a supply chain: The bullwhip effect. Management Science, 43(4), 546–558.

3. Cachon, G. P., & Lariviere, M. A. (2001). Contracting to assure supply: How to share demand forecasts in a supply chain. Management Science, 47(5), 629–646.

4. Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain: Concepts, strategies, and case studies (3rd ed.). McGraw-Hill.

5. Tang, C. S. (2006). Perspectives in supply chain risk management. International Journal of Production Economics, 103(2), 451–488.

6. Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: Extending the supply chain resilience angles towards survivability. International Journal of Production Research, 58(10), 2904–2915.

7. Oroojlooyjadid, A., Nazari, M., Snyder, L. V., & Takáč, M. (2020). A deep Q-network for the beer game: Deep reinforcement learning for inventory management. European Journal of Operational Research, 285(2), 594–609.

8. Boute, R. N., Gijsbrechts, J., van Jaarsveld, W., & Vanvuchelen, N. (2022). Deep reinforcement learning for inventory control: A roadmap. European Journal of Operational Research, 298(2), 401–421.

9. Sutton, R. S., & Barto, A. G. (2018). Reinforcement learning: An introduction (2nd ed.). MIT Press.

10. Ramchurn, S. D., Huynh, T. D., & Jennings, N. R. (2004). Trust in multi-agent systems. The Knowledge Engineering Review, 19(1), 1–25.

11. Sabater, J., & Sierra, C. (2005). Review on computational trust and reputation models. Artificial Intelligence Review, 24(1), 33–60.

12. Zhang, C., & Shah, J. A. (2014). Fairness in multi-agent sequential decision-making. In Advances in Neural Information Processing Systems (Vol. 27).

13. Mnih, V., Kavukcuoglu, K., Silver, D., Rusu, A. A., Veness, J., Bellemare, M. G., ... & Petersen, S. (2015). Human-level control through deep reinforcement learning. Nature, 518(7540), 529–533.

14. Silver, D., Huang, A., Maddison, C. J., Guez, A., Sifre, L., van den Driessche, G., ... & Dieleman, S. (2017). Mastering chess and shogi by self-play with a general reinforcement learning algorithm. arXiv preprint arXiv:1712.01815.

15. Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135.

16. Nowak, M. A., & Sigmund, K. (2005). Evolution of indirect reciprocity. Nature, 437(7063), 1291–1298.

17. Hu, X., & Caldentey, R. (2023). Trust and reciprocity in firms’ capacity sharing. Manufacturing & Service Operations Management, 25(4), 1436-1450.

18. Chen, F. (2003). Information sharing and supply chain coordination. In A. G. de Kok & S. C. Graves (Eds.), Handbooks in operations research and management science: Supply chain management (Vol. 11, pp. 341–421). Elsevier.

19. Tao, F., Zhang, H., Liu, A., & Nee, A. Y. C. (2019). Digital twin in industry: State-of-the-art. IEEE Transactions on Industrial Informatics, 15(4), 2405–2415.

20. Dwork, C., Hardt, M., Pitassi, T., Reingold, O., & Zemel, R. (2012). Fairness through awareness. In Proceedings of the 3rd Innovations in Theoretical Computer Science Conference (pp. 214–226). ACM.

21. Rahwan, I., Cebrian, M., Obradovich, N., Bongard, J., Bonnefon, J. F., Breazeal, C., ... & Wellman, M. (2019). Machine behaviour. Nature, 568(7753), 477–486.

22. Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829–846.

23. European Commission. (2020). Proposal for a regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). COM(2020) 108 final.

Downloads

Published

2026-06-19