An H∞ control method of the bullwhip effect for a class of supply chain system

Xiao-Yuan Huang, Ni-Na Yan and Hai-Feng Guo

International Journal of Production Research, 2007, vol. 45, issue 1, 207-226

Abstract: In this paper, we develop models of a class of supply chain systems, including a multi-echelon supply chain system, a time-lag dynamic supply chain system, and a dual-channel supply chain with a B2B e-market, and analyse each of the bullwhip effects respectively. Furthermore, we address a new method for dynamic quantification and calculations of the bullwhip effect based on classical control theories and methods, and discuss the H∞ control strategies of these systems under the worst fluctuation of demand. Finally, combined with the empirical practices of the most representative state-owned companies in China, we carry out three simulation experiments, and from the results we find that the bullwhip-effect coefficients of these three systems are all controlled and dampened with the H∞ control method.

Date: 2007
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DOI: 10.1080/00207540600678912

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