Supply Chain Disruption Management In Electronic Business Environment

Electronic business is an efficient way to bridge the information gap between firms all over the world. It helps firms to deal with unexpected events which may cause significant profit loss. In a single-product supply chain system, which contains a retailer and a manufacturer, the impact of demand disruption is analyzed and the optimal disruption management policy is derived using quantitative method. Compared with the traditional business environment, electronic market provides more flexibility and robustness to the supply chain system. A numerical experiment is provided to show the effectiveness of the disruption management policy and the value of electronic exchange. Finally, how to extend the model in future research work is also described.