Real time disruption management under two factors disruptions in supply chain

This paper studies the coordination problem of a supply chain with one supplier and one retailer under market scale and production cost disruptions, where demand function is nonlinear. The optimal emergency strategies are obtained for different disruption conditions under the centralized mode. The result shows that the original production plan has some robustness, but the retailing price always needs to be adjusted according to the different disruptions in order to maximize supply chain profit. For the decentralized model, when market scale and production cost are disrupted by the emergent events, it is proved that the supply chain can be fully coordinated by adjusting the price discount policy: the all-unit quantity discount policy and the capacitated linear price policy.