Simulation and Analysis of the Complex Behavior of Supply Chain Inventory System Based on Third‐Party Logistics Management Inventory Model with No Accumulating of Unsatisfied Demand

Abstract

Under the third-party logistics management inventory model, the system dynamics method is used to establish a nonlinear supply chain system model with supply capacity limitation and nonpermissible return, which is based on unsatisfied demand nonaccumulation. The theory of singular value and the Jury Test are used to derive the stable interval of the model which is simplified. The Largest Lyapunov Exponent (LLE) of the system is calculated by the Wolf reconstruction method and used to analyze the influence of different parameters of system’s stability. Then, the most reasonable and unreasonable combination of decision parameters under different demand environment is found out. Next, this paper compared and analyzed the change of inventory or transportation volume of system members under the combination of rational and irrational decision parameters. All of these provided guidance for decision making, which shows an important practical significance.

Freight Time and Cost Optimization in Complex Logistics Networks

“…It is particularly difficult to keep transportation networks optimized when operations span thousands of miles and serve thousands of customers. Logistics is known to be a highly complex challenge that is not amenable to traditional linear optimization strategies due to its high dimensionality and rigidity in the face of limited accuracy and variation of conditions [1][2][3]. Optimizing a nonlinear system is quite challenging as the output solution is not unique and simply a linear combination of the independent parts [4].…”

Simulation and Analysis of the Complex Dynamic Behavior of Supply Chain Inventory System from Different Decision Perspectives

“…In general, the decision makers pay more attention to inventory adjustment, and the adjustment parameters are less than 1; this article assumes the value range of these two inventory adjustment coefficients is 0 < α SL ≤ α S to 0.02 ≤ α S ≤ 1. Both α S and α SL have changed by 0.02 steps [2,25]. And three combinations of safety stock factors [G d , G i ] are selected, including [1,4], [2,5], and [3,6].…”

“…Both α S and α SL have changed by 0.02 steps [2,25]. And three combinations of safety stock factors [G d , G i ] are selected, including [1,4], [2,5], and [3,6].…”

“…In other words, the entire supply chain system does not include the retailer, and the inventory of other parts has reached 460. Similarly, when the safety stock parameter combination is [2,5], the overall stock level is about 520 based on the global decision perspective. Based on the local decision perspective, the combined system inventory level under the perspective is about 505.…”

“…Gradually, some new supply chain models are formed and applied in practice. Among them, the more commonly used are the vendor-managed inventory (VMI) model and the third-party logistics management inventory (TMI) model [2] so that the problems faced by the traditional SC have undergone some changes. For example, the bullwhip effect can be improved.…”