Financing Strategy for an Uncertain Dual-Channel Closed-Loop Supply Chain Based on Robust Control Method

The management strategy of working capital and total financing cost are the critical problem of all supply chain. When the internal parameter uncertain item and the external unknown customer demand seriously affect the stability of the operation of the dual-channel financing closed-loop supply chain (CLSC), the financing strategy for the working capital is complex and its astringency can't be assured easily. Thus, how to control the dynamic evolution of the working capital of the dual-channel CLSC system is a big difficulty. The main work of this article is to utilize a T-S fuzzy model to study a robust financing strategy for the CLSC system. To begin with, the basic dynamic uncertain discrete model for the financing CLSC system is set up consisted of the current working capital and the total financing cost. Then, the discrete Takagi-Sugeno (T-S) fuzzy theory has been introduced to converted the basic dynamic uncertain model into a set of switching subsystems according to different initial working capital levels. The third, a robust H_ $\infty $ control approach has been proposed to reduce the influence of bullwhip effect and the uncertain item in the system parameter and give the financing strategies at different initial working capital levels. Finally, numerical tests are developed to verify the availability of the proposed financing strategy.