Abstract
In this paper, we investigate a supply chain consisting of an OEM (i.e., original equipment manufacturer) and a CM (contract manufacturer), in which the OEM decides design effort level and marketing level, and the CM makes decision on product manufacturing effort level. We establish a three-dimensional discrete dynamic model with time delay. Firstly, the sufficient conditions for Neimark–Sacker bifurcation are obtained by using different combinations of decision delay periods as bifurcation parameters, and the effect of the adjustment speeds of decision variables on the system stability and impact of time delay on the system stability are discussed, respectively. Secondly, we perform numerical simulation of this model from the perspective of entropy theory. Finally, we propose two methods to control chaos. Results show that when the time delay or the adjustment speed of decision variable exceed a certain threshold, the system will be led into a chaotic state and the entropy of the system will increase. For alleviating the negative effects of chaotic systems, we introduce control parameters to make efficient control on the chaos. At the critical point, the critical value of the adjustment speed of design effort level (or marketing level) of OEM increases as the adjustment speed of the manufacturing effort level of CM decreases, and vice versa.
Highlights
We investigate an OEM supply chain consisting of an OEM and a CM, in which OEM first decides the design effort level and marketing level, and CM makes decision on the manufacturing effort level of the product
We discuss the effect of the time delay of three decision variables on the OEM supply chain
We investigate an OEM supply chain with R&D efforts including design effort level gm of the OEM and manufacturing effort level gs of the CM. e OEM and CM are responsible for the entire lifecycle of their products for consumers, from conception, through development and eventually to marketing. e OEM determines the design effort level gm and marketing level η of the products, and manufacturing of the products is outsourced to the CM who decides the manufacturing effort level gs
Summary
Since most of decision makers are risk-averse and egocentric, it is more interesting to investigate the dynamic characteristics of an OEM supply chain with the time delay. We investigate an OEM supply chain consisting of an OEM and a CM, in which OEM first decides the design effort level and marketing level, and CM makes decision on the manufacturing effort level of the product. We discuss the effect of the time delay of three decision variables (i.e., design effort level gm, marketing level η, and manufacturing effort level gs) on the OEM supply chain. E proposed method in this paper is used to analyze the chaotic behavior of OEM supply chain with time delay from entropy theory perspective, in which the distributor and the retailer are characteristic of bounded rationality.
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