Study On Decisions In A Supply Chain With Advertising Under Demand And Cost Disruptions

With the globalization of economic, supply chain competition has been gradually replacing the traditional competitive model. Integration, stability and timely response of the supply chain has become the company's core competitive advantage. The uncertainty of the market environment greatly challenges the stability of the supply chain, which makes the supply chain disruption management become a hot topic.Supply chain disruption management is more concentrated in a single disturbance factors, this paper supplement to this problem: with demand-stimulating advertising level, we consider disruptions from both the demand and cost. Under the centralized and decentralized supply chain, we study the traditional two-stage supply chain, taking into account advertising and prices depend on demand function, after demand and cost disruptions, the supply chain should adjust the initial production plans to make the supply chain to achieve optimal profits again, and comparative analysis of robustness of initial production plans. At the same time, we depict a range of different disturbances, supply chain optimal level of advertising and production quantity adjustment strategy. Finally, we calculate supply chain disturbance information value to analyze the best strategy to deal with supply chain disturbances.Studies have shown that when the market demand and production costs disrupted in centralized and decentralized decision-making model, the initial optimal production plan still has a certain robustness, and both of them have the same disturbance intervals. Compared with the decentralized supply chain, centralized supply chain gets lower prices and higher advertising lever and higher demand and better total profits. In addition, different supply chain decision models have different disturbance information value.