Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers | Health & Environmental Research Online (HERO)

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Citation
Tags

HERO ID

7151712

Reference Type

Journal Article

Title

Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers

Author(s)

Ma, J; Ma, X; Lou, W; ,

Year

2016

Is Peer Reviewed?

Yes

Journal

Entropy
ISSN: 1099-4300

Publisher

MDPI

Location

BASEL

DOI

10.3390/e18110416

Web of Science Id

WOS:000390101200033

Abstract

In this research, a model is established to represent a supply chain, which consists of one manufacturer and two retailers. The price-sensitive demand model is considered and the price game system is built according to the rule of bounded rationality as well as the entropy theory. With the increase of the price adjustment speed, the game system may go into chaos from the stable and periodic state. The bullwhip effect and inventory variance ratio of different stages that the system falls in are compared in real time. We also employ the delayed feedback control method to control the system and succeed in mitigating the bullwhip effect of the system. On the whole, the bullwhip effect and inventory variance ratio in the stable state are smaller than those in period-doubling and chaos. In the stable state, there is an optimal price adjustment speed to obtain both the lowest bullwhip effect and inventory variance ratio.