Supply Chain Coordination with Market Scale and Price Sensitivity Coefficient Disruptions under Nonlinear Demand Function

This paper studies the coordination problem of a supply chain with one supplier and one retailer under demand disruption. When the market scale and price-sensitive coefficient are disrupted in the planning horizon, where price-demand relationship is nonlinear, the optimal emergency strategies about adjusting price and production quantity is proposed under the centralized model. For the decentralized model, it is proved that the supply chain can be fully coordinated by adjusting the revenue sharing contract when disruption occurs. Finally, a numerical analysis is given to illustrate the analysis approach.