Abstract: The contract coordination mechanism of supply chain is the important content of chain management, while the contract coordination mechanism of supply chain about disruption event is the study hotspot in the recently years. In this paper, coordination policies for a one-supplier-one-retailer supply chain that experiences demand and purchase cost disruptions in the planning horizon are presented. The disruption management decisions from the point view of the supplier when demand and purchase cost of retailer disrupt simultaneously under the mode of concentrated and decentralized supply chain are analyzed. It is proved that a quantity discount contract can be used to coordinate the supply chain under normal environment. Under centralized decision-making model, the original production plan of the supply chain has certain robustness and it is necessary to change the original production plan to maximize the supply chain profit when the disruptions change greatly enough. Under the decentralized decision-making model, it is proved that the supply chain cannot be coordinated by the original quantity discount contract and the new appropriate quantity discount contract is designed to coordinate the supply chain after disruptions. Finally, a numerical example is given to illustrate the findings.

Key words: disruption management, demand disruption, purchase cost disruption, supply chain coordination, quantity discount contract