Supply Chain Coordination under Demand and Production Cost Disruptions with revenue sharing contract

Revenue sharing contract is a relative new and effective supply chain coordination mechanism investigated in much literature under the stationary scenario. In traditional researches, there is no consideration about the effect from market demand and production cost disruptions caused by the unforeseeable events. In this paper, we consider a one-supplier-one-retailer supply chain which adopts the revenue sharing contract, and then investigate how to keep on coordination when the supply chain coordination is broken down by the unforeseeable events. We give the optimal emergency strategy and propose a new adjusted revenue sharing contract to respond the risk from market demand change and production cost fluctuation.