Abstract: The paper investigates the coordination mechanism for a supply chain with one manufacture and two competing retailers when the product cost, market demand and price sensitive coefficient are disrupted simultaneously under the Bertrand game. We analyze how the linear quantity discount contract may take its effect to coordinate the supply chain. The study shows that the concentrated supply chain can be coordinated by linear quantity discount contract after the three factors disrupted simultaneously, and the study also shows the original coordination mechanism has no longer robustness to the decentralized supply chain. The decentralized supply chain can be coordinated only when the manufacture adopts a new linear quantity discount contract. Finally, a numerical example is given to illustrate the findings.

Key words: disruption management, multi-factors disruption, linear quantity discount contract, game theory, supply chain management