THE STUDY OF CHAOTIC BEHAVIOR OF DEMAND INFORMATION SHARING SUPPLY CHAIN INVNENTORY SYSTEM

The chaotic behavior of a constrained nonlinear inventory system is investigated using control theory, nonlinear system theory and chaos theory. A well-established production and distribution scheduling algorithm, called Automatic Pipeline, Variable Inventory and Order Based Production Control System (APVIOBPCS) with Demand Information Sharing (DIS) mechanism is adopted. Besides qualitative analysis methods, such as phase diagram and bifurcation diagram, Lyapunov exponent spectrum is employed to analyze the chaotic behavior. The numerical simulation results show that with the target inventory parameter changes, the behavior of the DIS nonlinear system is different from that of traditional inventory systems. Lyapunov exponent confirms that the behavior of DIS supply chain members shift between chaotic and periodic movement with the target inventory increases. The system shows periodic movement when the target inventory parameter is low. Therefore the DIS supply chain members can effectively reduce inventory, and simultaneously keep periodic movement.