Simulation and Analysis of the Complex Dynamic Behavior of Supply Chain Inventory System from Different Decision Perspectives

Zusheng Zhang,Xu Wang,Jianhui Du,Baltazar Aguirre-Hernández,Shanshan Yang,Yingbo Wu

doi:10.1155/2020/7393848

Abstract

Based on the local decision perspective and the global decision perspective, considering the limitation of supply capacity and prohibiting returns, the system dynamics method is used to establish a nonlinear supply chain system model. We use the Z-transform theory to transform the dynamic transfer equation into a block diagram, build a supply chain system simulation model, and use it to conduct simulation experiments. The Wolf reconstruction method is used to calculate the largest Lyapunov exponent (LLE) value of each node or combined system to judge the stability of the system. Based on different decision-making perspectives, under different combinations of safety stock factors and demand scenarios, the adjustment coefficients’ decision-making schemes that keep each node in a stable state are obtained. Then, we comparatively analyze the inventory changes of each node and combined system in a stable state under different decision-making schemes.

Highlights

Chain management has always been a concern of enterprises
With the deepening of research, it is found that based on various assumptions, for example, orders at all levels of the supply chain are satisfied, regardless of inventory constraints, and the supply chain system is regarded as a simple linear system model
Based on the local decision perspective, the inventory level of the combined system under the perspective is about 631. erefore, for any combination of safety inventory parameters and any demand scenarios, based on a global decision perspective, choosing a reasonable adjustment parameter scheme can reduce the overall inventory level of the supply chain. e overall inventory volatility has increased slightly, but it does not affect the stability of the overall inventory

Summary

Introduction

Chain management has always been a concern of enterprises. To help enterprises better implement effective supply chains, Pittiglio, Rabin, Todd & McGrath (PRTM) and AMR Research (AMR) led the establishment of the Supply Chain Council (SCC) in 1996 and released supply chain operations reference (SCOR) model, realized the transformation from function-based management to process-based management, and improved the performance of the supply chain. With the deepening of research, it is found that based on various assumptions, for example, orders at all levels of the supply chain are satisfied, regardless of inventory constraints, and the supply chain system is regarded as a simple linear system model It leads to the inconsistency between the research results and the actual situation and fails to reveal the nonlinear phenomena except the bullwhip effect. Many scholars consider practical factors such as prohibiting returns and limited supply capacity, constructing nonlinear dynamic models, and studying the impact of different demand scenarios, production models, and decision parameters on the stability of the supply chain, which has achieved rich results. The effect of safety stock parameters on the complex dynamic behavior of the supply chain is analyzed

Supply Chain System Dynamic Model

Systematic Difference Equations

The Block Diagram from Different Perspectives

Gain3 z–1 Delay7 z–1

Conclusion