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This paper presents observer-based chaos suppression for a four-echelon supply chain system based on fractional order calculus. As the market information is usually distorted, nonlinear observers for supply chain model are implemented to accomplish chaos suppression using linear matrix inequality (LMI). Sufficient conditions for the observer-based schemes are established by using Lyapunov stability theory. The fractional calculus is utilised to provide superior dynamic performance for the controlled supply chain system over its integer-order counterpart. Numerical simulations are performed to validate robust performance and stability of observer-based supply chain management. Finally, it is found that the presented approach can help decision-makers develop effective supply chain networks under disruptions.

Observed-based decision-making strategy of supply chain management under business disruptions