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Chinese Journal of Management Science ›› 2009, Vol. 17 ›› Issue (5): 53-60.

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Research on Coordination Mechanism of Supply Chain with Disruption when Multiple Retailers Competition

CAO Er-bao1,2, LAI Ming-yong1,2   

  1. 1. School of Economics and Trade, Hunan University, Changsha 410079, China;
    2. Hunan Province Laboratory of Logistics Information and Simulation Technology, Changsha 410079, China
  • Received:2008-12-05 Revised:2009-08-31 Online:2009-10-31 Published:2009-10-31

Abstract: From the perspective of corporation management and system optimization,this paper studieds the problem that how to make the emergency response decision of a supply chain system consisted of one supplier and n Cournot competing retailers when facing the disruptions. It is proved that a revenue sharing contract can be used to coordinate the supply chain under normal environment. But the coordination may be broken off by demand and cost disruptions. When the market demand increases and production cost decreases,the production quantity of supplier must increase. When the market demand decreases and production cost increases,the production quantity of supplier must decrease. And,the optimal strategies that the centralized decision-making supply chain replied to the disruptions is proposed by solving the Karush-Kuhn-Tucker(KKT) condition of optimal profit of supply chain system under disruptions. It is further proved that an improved revenue sharing contract can be used to coordinate the decentralized decision-making supply chain. Finally,a numerical experiment is adopted to validate the models

Key words: supply chain management, disruption management, coordination mechanism, revenue sharing, game theory

CLC Number: