Based on the work of domestic and foreign scholars and the application of chaotic systems theory, this paper presents an investigation simulation of retailer�s demand and stock. In simulation of the interaction, the behavior of the system exhibits deterministic chaos with consideration of system constraints. By the method of space�s reconstruction, the maximal Lyapunov exponent of retailer�s demand model was calculated. The result shows the model is chaotic. By the results of bifurcation\r\ndiagram of model parameters k, r and changing initial condition, the system can be led to chaos.
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