Abstract
Under the third-party logistics management inventory model, the system dynamics method is used to establish a nonlinear supply chain system model with supply capacity limitation and nonpermissible return, which is based on unsatisfied demand nonaccumulation. The theory of singular value and the Jury Test are used to derive the stable interval of the model which is simplified. The Largest Lyapunov Exponent (LLE) of the system is calculated by the Wolf reconstruction method and used to analyze the influence of different parameters of system’s stability. Then, the most reasonable and unreasonable combination of decision parameters under different demand environment is found out. Next, this paper compared and analyzed the change of inventory or transportation volume of system members under the combination of rational and irrational decision parameters. All of these provided guidance for decision making, which shows an important practical significance.
Highlights
As market competition continues to intensify, competition among enterprises is gradually transformed into competition for interests among supply chains
For the new supply chain models, Disney and Towill [19] used the APIOBPCS ordering strategy to use mathematical models to study the stability of Vendor-Managed Inventory (VMI) systems, confirmed the instability caused by poor system design through dynamic simulation analysis, and proved that specific production delay can be avoided by setting reasonable parameters
Based on the premise of unsatisfied demand no accumulation, this paper constructs a dynamic model of thirdparty logistics inventory management supply chain system, simplifies the model and uses the Wolf reconstruction method and singular value theory to determine the conditions for simplifying the system stability, and uses
Summary
As market competition continues to intensify, competition among enterprises is gradually transformed into competition for interests among supply chains. In the traditional SC model, each player is responsible for its inventory control, production, or distribution ordering activities, and each echelon only has their immediate customer information [2]. With the continuous development of information technology, some new supply chain models have gradually emerged. In the new supply chain model, demand information, inventory information, and production information are fully shared. The problem of gradually increasing demand has been well controlled Whether it is from the traditional supply chain model to the supplier management inventory model or the supplier management inventory model, they all evolve to the thirdparty logistics management inventory model; these are in line with the concept of supply chain management specialization, refinement, and information
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
