Coordinating a Supply Chain under O2O Business Model When Facing Multiple Disruptions

A supply chain under O2O business model, a new kind of supply chain, is studied in this paper, in which the supply chain is consisted of one supplier (she) and multiple O2O retailers. The supplier finds that demand disruption and retailer's sales cost disruption takes place after her production plan is formulated. How to optimize the total supply chain profit in the centralized and the decentralized decisions is analyzed by using Stackelberg game, which is also a new problem compared with the previous studies. The results obtained are as follows. In the centralized decision, the supplier needs to adjust the channel price if the disruptions satisfy a given condition. If the disruptions satisfy other conditions, the supplier needs to change both the channel retail price and the production quantity. In the decentralized decision, an adjusted revenue-sharing contract, a new supply contract, can coordinate the disrupted supply chain.