In this paper, an effective procedure based on coordinate stretching and radial ba- sis functions (RBFs) collocation method is applied to solve singularly perturbed differential-difference equations with layer behavior. It is well known that if the boundary layer is very small, for good resolution of the numerical solution at least one of the collocation points must lie in the boundary layer. In fact, a set of uniform centers is distributed in the computational domain, and then coordinate stretching based transform is used to move the centers, to the region with high gradients. In addition to the integrated multiquadric (MQ) collocation method is applied to solve the transformed equation. The effectiveness of our method is demonstrated on several examples with boundary layer in both cases, i.e., boundary layer on the left side as well as the right side.

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