An H∞ control method of the bullwhip effect for a class of supply chain system

In this paper, we develop models of a class of supply chain systems, including a multi-echelon supply chain system, a time-lag dynamic supply chain system and a dual-channel supply chain with a B2B e-market, and analyse each of the bullwhip effects respectively. Furthermore, we address a new method for dynamic quantification and calculations of the bullwhip effect based on classical control theories and methods, and discuss the H∞ control strategies of these systems under the worst fluctuation of demand. Finally, combined with the empirical practices of the most representative state-owned companies in China, we carry out three simulation experiments, and from the results we find that the bullwhip effect coefficients of these three systems are all controlled and dampened with the H∞ control method.