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The Complexity Of Supply Chain System’S Logistics Financial Management And Dynamic Nonlinear System

Author

Listed:
  • YU MIAO

    (School of Business, China University of Political Science and Law, Beijing, P. R. China)

  • XIN JIN

    (School of Business, China University of Political Science and Law, Beijing, P. R. China)

  • ABDULAZIZ A. ALSULAMI

    (��Information Systems Department, Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah, Saudi Arabia)

  • MENGLEI KONG

    (School of Business, China University of Political Science and Law, Beijing, P. R. China)

  • PANG XU

    (School of Business, China University of Political Science and Law, Beijing, P. R. China)

Abstract

The aim of this paper is to discuss the accidental events’ impacts on the complicated supply chain systems and reveal the dynamic nonlinear system’s role in enterprises’ logistics financial management. First, the logistics distribution network and nonlinear system are analyzed and introduced, revealing the complexity of enterprises’ supply chain systems. Second, considering the situation of enterprises’ financial management, four major entities, the supplier, the distributor, the retailer, and the manufacturer, are introduced to construct a dynamic nonlinear model for the supply chain system. Finally, the model before and after accidental events are simulated and analyzed using the AnyLogic software. Results demonstrate that in normal states, each node’s inventory in the system changes periodically, while the distributor’s state is the most stable. A notable decrease in market demand has the largest impact on the distributor. Once the market demand is recovered, the decrease in the distributor’s inventory is the most apparent, and the inventories of the supplier, the retailer, and the manufacturer also decrease. The supplier has the highest cost at the beginning of system operation, and the distributor’s cost is the highest after the operation becomes stable. Once an accidental event caused a sharp decrease in market demand, the costs of all major entities in the system show an increasing trend. Once the market demand is recovered, the costs of different node entities will increase instead. As for the profits, the distributor has the highest profit initially, which is significantly influenced by the accidental events. The results provide a reference for revealing the changing laws of complicated supply chain systems and promoting the development of enterprises’ financial management.

Suggested Citation

  • Yu Miao & Xin Jin & Abdulaziz A. Alsulami & Menglei Kong & Pang Xu, 2022. "The Complexity Of Supply Chain System’S Logistics Financial Management And Dynamic Nonlinear System," FRACTALS (fractals), World Scientific Publishing Co. Pte. Ltd., vol. 30(02), pages 1-9, March.
  • Handle: RePEc:wsi:fracta:v:30:y:2022:i:02:n:s0218348x2240059x
    DOI: 10.1142/S0218348X2240059X
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