Emergency Management Of The Supply Chain Demand And Production Costs While Disturbance Study

In the face of highly competitive global markets, companies are pressurized to reduce costs and increase efficiency. As a consequence, they are employing new strategies such as outsourcing, single sourcing, centralized distribution, etc., which result in complex supply chains. Complex supply chains become more fragile and difficult to deal with the threat of various risks.At present, all kinds of unexpected events occur frequently, such as the event that a lighting caused a ten-minute fire at Philips chip manufacturing plant, the event that Taihu Lake blue algae polluted Wuxi's tap water caused citizens buy large amounts of purified water, American secondary mortgage market crisis (the loan-to-crisis), the event that more than a dozen provinces in southern China were hit by a severe snowstorm, the heaviest yet for a century, followed by persistently freezing temperatures. So the normal operation is greatly affected in the supply chain. If disruptions are not processed timely and effectively, they will transfer between the members of the supply chain, which cause supply chain ripple effect. Ultimately they will seriously affect the company income, operation efficiency and customer satisfaction, market competition and even result in a company's bankruptcy. Therefore, Disruption Management has risen as a new and exciting field in operations Research and Management Sciences, has received more and more attention from academic interest and practical applications.In this paper, on the basis of previous studies, we extend disruption factors to market demand and production cost disruptions simultaneously. The purpose of this paper is to investigate coping strategies in a one-supplier-one-retailer supply chain for a product with a short life cycle, which experiences disruptions in stochastic demand and production cost during the planning horizon.This paper based on the newsboy model studies two types of supply chain system adopted quantity discount contract and wholesale price contract respectively. According to way of thinking in disruption management, we propose two coping strategies for the demand and production cost disruptions in illusion to supply chain of each contract: Inaction Strategy and Reaction Strategy. Then we use simulation data to compare and analyze the change of retailer, supplier, and total supply chain profit and production plan. From the result of comparative analysis, we can get the optimal strategy of retailer, supplier and supply chain under different disruption situations. Finally, we compare the disruption impact of the quantity discount contract and wholesale price contract from two angles of the supply chain and production plan, and get a greater impact to whom under the same disruptions and strategy.Through research we get some of conclusions or managerial insights, such as1. After the disruptions, the optimal strategy of choice in supplier and retailer is inconsistent in most cases. So it is necessary to adopt some incentive measures to encourage both sides to maintain the consistency of their strategic choice.2. Original production plan drawn up by supplier has some robustness under a disrupted in market demand scale and production cost. No change is required when the market scale and production cost are perturbed only slightly.3. Supply chain coordination is more favorable for supplier to response the unexpected events.