Disruption management of supply chain under demand and production cost disruptions

Author

Huo Hong ; Cui Ying-hui

Author_Institution

Sch. of Manage., Harbin Univ. of Commerce, Harbin, China

fYear

2009

fDate

17-19 June 2009

Firstpage

1945

Lastpage

1950

Abstract

The coordination problem of a supply chain with one supplier and one retailer is analyzed under disruptions, and the optimal response to disruptions of both centralized supply chain and decentralized decision-making supply chain is given. Based on the consideration about the change of the demand and production cost and price-sensitive coefficient, a coordination mechanism about adjusting price and production plan is proposed to maximize the profit of the centralized supply chain. It is proved that the decentralized decision-making supply chain under disruptions can be coordinated by constructing a new quantity discount contract. Through adjusting the original contract, the decentralized decision-making supply chain can achieve the optimal response to disruptions the same as the centralized supply chain.

Keywords

contracts; decision making; pricing; production planning; profitability; retailing; supply chain management; decision-making; price-sensitive coefficient; production cost disruption; production plan; profitability; quantity discount contract; retailing; supply chains disruption management; Business; Contracts; Cost function; Decision making; Disaster management; Earthquakes; Marketing and sales; Production systems; Supply chain management; Supply chains; Coordination Mechanism; Disruption Management; Quantity Discount Contract; Supply Chain;

fLanguage

English

Publisher

ieee

Conference_Titel

Control and Decision Conference, 2009. CCDC '09. Chinese

Conference_Location

Guilin

Print_ISBN

978-1-4244-2722-2

Electronic_ISBN

978-1-4244-2723-9

Type

conf

DOI

10.1109/CCDC.2009.5191616

Filename

5191616