Response to the disruption of supply chain with effort dependent demand

On the premise of one supplier and one retailer supply chain facing stochastic effort dependent demand, this paper analyzes the impact of effort factor on supply chain collaboration and proves the normal revenue-sharing contract can not coordinate the supply chain. Hence, the paper establishes a coordination mechanism with effort cost sharing to restore the coordination of supply chain. Furthermore, It proves this coordination may be broken off by an emergent event, which may make the demand disruptions. Then the paper proposes an adjusted revenue-sharing contract which has anti-disruption ability as an optimal strategy for supply chain to the disruption. Finally, the paper gives an numerical example to illustrate the model and the solution process.