Abstract
In this paper, we have presented a special finite difference method for solving a singular perturbation problem with layer behaviour at one end. In this method, we have used a second order finite difference approximation for the second derivative, a modified second order upwind finite difference approximation for the first derivative and a second order average difference approximation for y to reduce the global error and retaining tridiagonal system. Then the discrete invariant imbedding algorithm is used to solve the tridiagonal system. This method controls the rapid changes that occur in the boundary layer region and it gives good results in both cases i.e., h ≤ ε and ε << h. The existence and uniqueness of the discrete problem along with stability estimates are discussed. Also we have discussed the convergence of the method. We have presented maximum absolute errors for the standard examples chosen from the literature.