Stability of Linearly Switched Demand Dynamics in Supply Chain Based on Inventory

Abstract

The organized supply chain is one of the best competitive ways for the retailer. The dynamics and stability of a supply chain under inventory and price with the feature of piecewise linearity is analysed. This switched linear model composed of four subsystems for the first time. On the basis of linear switched model, some stabilities are derived and the global dynamic behavior is theoretically examined. It is illustrated that the combination of the stock-dependent demand function and inventory can bring about the stability result under, but also arise more complicated nonlinear fluctuations under bη ≥ 1