Disruptions Management And Mechanism’s Feasibility Analysis For The Supply Chain When The Demand Depends On The Inventory

Disruptions are nearly inevitable in supply chain management nowadays, which may greatlyaffect the original decisions of enterprises. Therefore, the competition between companies, evensupply chains is becoming increasingly fierce. Enterprises who want to survive and get developed insuch a society must take measures to cope with these disruptions. While traditional supply chainmanagement only works in regular operation, i.e. in the operation that no disruption appears, onceunderlying disruptions happen, the original optimal decisions may even fail. This paper aims atstudying the disruption management of a supply chain and feasibility analysis of optimal decisions.This paper is divided into six chapters. The first chapter briefly introduces the background of thisstudy, the purpose and significance of this paper, shows the main work, at the same time offers therelated mathematical model. The second chapter overviews the related work done by domestic andforeign counterparts. Chapter3discusses the optimal decision of the system without disruption firstly;then studies the optimal decisions of centralized system when only inventory-holding cost disrupts;finally discusses the coordinating mechanism of decentralized system in different cases and analyzesthe feasibility of coordinating mechanism, that is, the condition under which “win-win” can berealized. Chapter4studies the optimal decisions of centralized system when inventory-holding costand demand disrupt simultaneously; and discusses coordinating mechanism and the feasibility ofcoordinating mechanism in a similar way. The conclusions are as follows: The lower the up-boundprofit of the retailer, the lower the possibility of ‘win-win’ situation will be. When the amount ofinventory-cost disruption is larger than a special threshold, both players can achieve a ‘win-win’situation. Otherwise, inventory-subsidy contract may be ineffective under a certain condition. We alsofind that if the disruption of inventory-holding cost is small and falls in between two specialthresholds, however, it is optimal for the manufacturer to keep the original production plan. Chapter5mainly discusses how the optimal decisions change with the disrupted factors, and analyzes thepossibility of “win-win” of the system by numerical experiments. The last chapter concludes thispaper.