Under the third-party logistics management inventory model, the system dynamics method is used to establish a nonlinear\nsupply chain system model with supply capacity limitation and nonpermissible return, which is based on unsatisfied\ndemand nonaccumulation. The theory of singular value and the Jury Test are used to derive the stable interval of the\nmodel which is simplified. The Largest Lyapunov Exponent (LLE) of the system is calculated by the Wolf reconstruction\nmethod and used to analyze the influence of different parameters of systemâ??s stability. Then, the most reasonable and\nunreasonable combination of decision parameters under different demand environment is found out. Next, this paper\ncompared and analyzed the change of inventory or transportation volume of system members under the combination of\nrational and irrational decision parameters. All of these provided guidance for decision making, which shows an important\npractical significance.
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