The Supply Chain Coordination with Market Scale and Retailer's Purchase Costs Disruptions

Most of papers of disruption management of supply chain were based on the assumption that only a single factor was disrupted. But in practice, the unexpected event will inevitably lead to a number of factor disruptions in the supply chain system. This paper considers the scale of market demand and retailer's purchase cost disruptions in the disruption management of supply chain. When demand is a linear function of the price, the manufacturer's cost of production is a convex of retailers deviate at the same time, a disruption strategy is proposed to optimize the supply chain profit. When manufacturer is the Stackelberg game leader, the coordination mechanism is proposed to coordinate the supply chain so as to realize the maximal profit of supply chain.