Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers
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...
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| Format: | Article |
| Language: | English |
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MDPI AG
2016-11-01
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| Series: | Entropy |
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| Online Access: | http://www.mdpi.com/1099-4300/18/11/416 |
| _version_ | 1811306176002916352 |
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| author | Junhai Ma Xiaogang Ma Wandong Lou |
| author_facet | Junhai Ma Xiaogang Ma Wandong Lou |
| author_sort | Junhai Ma |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-13T08:40:48Z |
| format | Article |
| id | doaj.art-1a941e38210c4953b32a74b80ef0fe8c |
| institution | Directory Open Access Journal |
| issn | 1099-4300 |
| language | English |
| last_indexed | 2024-04-13T08:40:48Z |
| publishDate | 2016-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Entropy |
| spelling | doaj.art-1a941e38210c4953b32a74b80ef0fe8c2022-12-22T02:53:55ZengMDPI AGEntropy1099-43002016-11-01181141610.3390/e18110416e18110416Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two RetailersJunhai Ma0Xiaogang Ma1Wandong Lou2College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaIn 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.http://www.mdpi.com/1099-4300/18/11/416bullwhip effectprice gameinventory variance ratiomeasure entropytwo retailersbifurcationchaos control |
| spellingShingle | Junhai Ma Xiaogang Ma Wandong Lou Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers Entropy bullwhip effect price game inventory variance ratio measure entropy two retailers bifurcation chaos control |
| title | Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers |
| title_full | Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers |
| title_fullStr | Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers |
| title_full_unstemmed | Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers |
| title_short | Analysis of the Complexity Entropy and Chaos Control of the Bullwhip Effect Considering Price of Evolutionary Game between Two Retailers |
| title_sort | analysis of the complexity entropy and chaos control of the bullwhip effect considering price of evolutionary game between two retailers |
| topic | bullwhip effect price game inventory variance ratio measure entropy two retailers bifurcation chaos control |
| url | http://www.mdpi.com/1099-4300/18/11/416 |
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