Demand fluctuation and chaotic behaviour by interaction between customers and suppliers

Demand fluctuation and chaotic behaviour by interaction between customers and suppliers

0.00 Avg rating0 Votes
Article ID: iaor20082472
Country: Netherlands
Volume: 107
Issue: 1
Start Page Number: 250
End Page Number: 259
Publication Date: Jan 2007
Journal: International Journal of Production Economics
Authors: ,
Keywords: simulation: applications
Abstract:

This paper presents an investigation on simulation of interaction between customers and suppliers in a three-tier supply chain system. In the simulation, customers respond to the price discount offer made by the supplier and the supplier adjusts the price according to stock held. The simulation shows that the behaviour of such interaction exhibits deterministic chaos. It is found that the attractors of the model move with the environment and the initial states. Thus, the bifurcating points in such a system are unable to provide a guideline in system design to avoid chaos.

Reviews

Required fields are marked *. Your email address will not be published.