Next Article in Journal
Investigation into Multi-Temporal Scale Complexity of Streamflows and Water Levels in the Poyang Lake Basin, China
Previous Article in Journal
Discussing Landscape Compositional Scenarios Generated with Maximization of Non-Expected Utility Decision Models Based on Weighted Entropies
Article Menu
Issue 2 (February) cover image

Export Article

Open AccessArticle
Entropy 2017, 19(2), 64; doi:10.3390/e19020064

Bullwhip Entropy Analysis and Chaos Control in the Supply Chain with Sales Game and Consumer Returns

1
,
1,* and 1,2,*
1
College of Management and Economics, Tianjin University, Tianjin 300072, China
2
School of Economics, Beijing Wuzi University, Beijing 101149, China
*
Authors to whom correspondence should be addressed.
Received: 29 November 2016 / Accepted: 3 February 2017 / Published: 10 February 2017
(This article belongs to the Section Complexity)
View Full-Text   |   Download PDF [4069 KB, uploaded 15 February 2017]   |  

Abstract

In this paper, we study a supply chain system which consists of one manufacturer and two retailers including a traditional retailer and an online retailer. In order to gain a larger market share, the retailers often take the sales as a decision-making variable in the competition game. We devote ourselves to analyze the bullwhip effect in the supply chain with sales game and consumer returns via the theory of entropy and complexity and take the delayed feedback control method to control the system’s chaotic state. The impact of a statutory 7-day no reason for return policy for online retailers is also investigated. The bounded rational expectation is adopt to forecast the future demand in the sales game system with weak noise. Our results show that high return rates will hurt the profits of both the retailers and the adjustment speed of the bounded rational sales expectation has an important impact on the bullwhip effect. There is a stable area for retailers where the bullwhip effect doesn’t appear. The supply chain system suffers a great bullwhip effect in the quasi-periodic state and the quasi-chaotic state. The purpose of chaos control on the sales game can be achieved and the bullwhip effect would be effectively mitigated by using the delayed feedback control method. View Full-Text
Keywords: supply chain; bullwhip effect; sales game; nonlinear characteristics; chaos; consumer returns; entropy supply chain; bullwhip effect; sales game; nonlinear characteristics; chaos; consumer returns; entropy
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Lou, W.; Ma, J.; Zhan, X. Bullwhip Entropy Analysis and Chaos Control in the Supply Chain with Sales Game and Consumer Returns. Entropy 2017, 19, 64.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Entropy EISSN 1099-4300 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top