Application and research on the complex dynamics behaviour under price-discount promotion policy in inventory control system

ABSTRACT

In this paper, we study the inventory control system of the apparel industry supply chain in which the products are fast-fashion and mass-consuming goods. Retailers tend to promote by price-discount policy to regulate overstock situation caused by fluctuated demand, frequent product upgrading, etc. Here, we discuss the impact of fluctuated demand triggered by price-discount promotion policy on the comprehensive inventory control system in which the final inventory and supply line stock are considered and weighted differently according to corresponding practical operation situations. In this model, stock returns are permissible. Then we calculated the Lyapunov stable region of the decision parameters based on the state space model. These conclusions present the managers a big picture to inspect the inventory control system and serve as reliable references to make correct decisions.

KEYWORDS:

• Bifurcation
• comprehensive inventory control system
• price-discount promotion policy
• complex theory
• system dynamics

Acknowledgements

We thank the reviewers and associate editor for their careful reading and helpful comments on the revision of paper.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The research was supported by the National Natural Science Foundation of china [No. 71571131] and [61273231], Doctoral Fund of Ministry of Education of china [Grant No. 20130032110073].