Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 7, Issue 2


Published
on

July 15, 2022


Pages

1057-1066


DOI

Article

Innovation of Economic Management Risk Control in Retailer Supply Chain Based on Differential Equation Model

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Authors

Qiuling Lu Affiliation:
Jilin Province Economic Management Cadre College, Changchun, 130012, China
, Ahmed Kh. Muttar Affiliation:
College of Administrative Sciences, Applied Science University, Bahrain
and Nasser El-Kanj Affiliation:
College of Business Administration, American University of the Middle East, Egaila, Al Ahmadi, Kuwait


Abstract

This paper constructs the state transition diagram of the retailer’s economic management risk control in the supply chain. At the same time, we construct the differential equation of the model. Based on the differential equation theory, we establish a dynamic equation model for product demand forecasting, which is suitable for the historical data of the retailer’s supply chain. At the same time, we use the two-party game model to determine the strategy choice of maximizing the income of a single enterprise in the secondary supply chain. The study finds that retailers can only maximize revenue through suboptimal order quantities when the financing limit has a substantially limiting effect.


Keywords

Differential equation model, Retailer supply chain, Economic management, Risk control, Ordering model, 34A07


Citation

Lu, Q., Muttar, A. K., & El-Kanj, N. (2022). Innovation of economic management risk control in retailer supply chain based on differential equation model. Applied Mathematics and Nonlinear Sciences, 7(2), 1057–1066. https://doi.org/10.2478/amns.2022.2.0090
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