Coordination Mechanism Analysis of Supply Chain under Disruptions

The coordination problem of a supply chain with one supplier and one retailer is analyzed under disruptions. Based on the consideration about the change of both the market scale and price-sensitive coefficient, and the nonlinear deviation cost, a coordination mechanism about adjusting price and production plan is proposed to maximize the profit of the centralized supply chain. It is proved that the decentralized decision-making supply chain under disruptions can be coordinated by constructing a new revenue sharing contract Through adjusting the original contract, the decentralized decision-making supply chain can achieve the optimal response to disruptions the same as the centralized supply chain.