H-infinity Control for Dual-Channel Closed-Loop Supply Chain Model with B2B E-market and Reverse Logistics

In this paper, we have built a state space dynamic model of a Dual-channel closed-loop supply chain model with B2B E-Market and the reverse logistics, which includes a manufacturer, a distributor and a consumer. And the reverse logistics includes the remanufacturing part and the gratuitous return. We analyze the bullwhip effects of the system. Furthermore, we discussed the H∞ control method of the system under the worst fluctuation of demand. From the simulating experiment, we find that the bullwhip effect coefficient of the system is dampened by the H∞ control method. And the simulation experiment shows that the more the preference rate of the costumer to Internet channel become large, the more the bullwhip effect of the system become small.