Research On Disruption Coping Strategies Based On Supply Chain Competition

In recent decades, along with the development of supply chain management, the research on supply chain management has caught great attention from theoretical and realistical areas. The application of related theories has brought great economic rewards to supply chain members. One of the aims of supply chain coordination is to coordinate the supply chain and gain more profits. Disruption management plays an important role in supply chain coordination. Due to the increasing gloabal competition, frequent occurrence of disruptions greatly affected the coordination of supply chains. Both business and theory circle have realized the importance of supply chain disruption management. As a result, it is significant to study supply chain coordination under disruption.Firstly, from the perspective of inner chain competition, the competition model within a supply chain is established, by comparing centralized and de-centralized decision, the optimum revenue of supply chain under centralized decision mode is achieved. Whole-sale discount contract is introduced to sovle the problem of profit allocation. Afterwards, on the basis of analyzing competition between supply chains, competition model between supply chains is established. Under the assumption of centralized decision, the price, product amount and profit are solved; the methods to improve competition advantage are pointed out.Afterwards, based on inner chain competition, this paper discusses the strategies after disruption. By analyzing the influence of disruptions on supply chain, demand disruption model is established. According to the extent of distruption, the strategies are devided into4types. Furthermore, the coordination effect of amount discont contract is analyzed. Finally, original strategy and coordinated strategy is compared to explain the necessity of disruption management.Then, under the assumption of convex cost function, responding model is constructed. According to the extent of demand disruption, discussion is performed from4aspects; disruption response strategy is put forward. Through the research, we find that no matter production function is linear or convex, under demand disruption; the price of retailor must be changed, while supplier’s production plan may remain the same. Amount discount contract is adopted to construct the coordination mechanism. Finally, strategies are compared.Furthermore, considering the cost disruption in supply chain, corresponding supply chain vs supply chain competition model is established. According to the extent of cost disruption, we discuss the disruption coordination strategy from4aspects. The result shows no matter how cost changes, the retailor price and production amount always be positive, when disruption is small, optimum retail price and production amount remain the same. Under the condition of sufficient disruption, both original production plan and retail price need to be adjusted in order to achieve more profit. The situation is devided into4scenery and their coordination strategies.Finally, numerical simulations are used to illustrate how the strategies reduce the influence of disruption on supply chain loss and increase the profit of supply chain. Besides, the numeric example also shows the necessity of adopting strategies to cope with disruption.