Robust controlling of chaotic behavior in supply chain networks

• Published in: The Journal of the Operational Research Society Vol. 68; no. 6; pp. 711 - 724
• Main Authors: Norouzi Nav, H., Jahed Motlagh, M. R., Makui, A.
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis 01.06.2017; Taylor & Francis, Ltd; Palgrave Macmillan UK; Taylor & Francis Ltd
• Subjects: Automobile industry; Business and Management; Chaos theory; chaotic behavior; Decision making; Delay; inventory control; linear matrix inequality (LMI); Management; Matrix methods; Nonlinear systems; Operations Research/Decision Theory; Robust control; supply chain network; Supply chains; time-varying delay; time-varying delay; robust control; linear matrix inequality (LMI); inventory control; chaotic behavior; supply chain network
• ISSN: 0160-5682; 1476-9360
• DOI: 10.1057/s41274-016-0112-4

The supply chain network is a complex nonlinear system that may have a chaotic behavior. This network involves multiple entities that cooperate to meet customers demand and control network inventory. Although there is a large body of research on measurement of chaos in the supply chain, no proper method has been proposed to control its chaotic behavior. Moreover, the dynamic equations used in the supply chain ignore many factors that affect this chaotic behavior. This paper offers a more comprehensive modeling, analysis, and control of chaotic behavior in the supply chain. A supply chain network with a centralized decision-making structure is modeled. This model has a control center that determines the order of entities and controls their inventories based on customer demand. There is a time-varying delay in the supply chain network, which is equal to the maximum delay between entities. Robust control method with linear matrix inequality technique is used to control the chaotic behavior. Using this technique, decision parameters are determined in such a way as to stabilize network behavior.