Demand And Cost Disturbances Under The Three Supply Chain Ripple Effect Study

Being one of the important coordination mechanisms for supply chain, it has become a very important in supply chain management, and it has also been drawn more and more attention by science and enterprise fields. Most of the researchers established their study on an ideal hypothesis. However, for a supply chain the exterior circumstances which it is in is full of uncertain factors, we often meet with all kinds of disruptions, which make the former plan seldom executed smoothly and steadily, the issue of supply chain disruption management is coming out. Then, researches on supply chain coordination strategy responding to disruptions will be practical and meaningful.Based on former research, this paper researches supply chain coordination by contracts under disruptions. The structure of supply chain is expanded to three-level supply chain from two-level supply chain. This paper focuses on a three-level supply chain composed of a single supplier, a singer manufacturer and a retailer who faces stochastic demand, it investigates the impact on three-level supply chain under market demand and production cost disruptions simultaneously. Main content of the paper are as follows:This paper studies two types of supply chain system adopted revenue sharing contract and buy back contract respectively. Firstly, we built up mathematics model for three-echelon supply chain with two contracts and got the contract parameters that would coordinate the chain. Following that, we studied the problem of how to respond the disruptions in the above supply chain, by conducting the theoretical analysis, we derives the optimal order quantity and the adjustment of parameter in two contracts, and we illustrated our results with using simulation data. Finally, we incorporate the ideas derived from ripple effect into it, and use profit to measure ripple effect. The we use simulation data to analyze the ripple effect with demand and cost disruption.This paper not only enriches the disruption management and its application in supply chain coordination research. Simultaneously, but also offers the decision-makers of the supply chain a powerful support on how to coordination the chain with the disruptions, and in some extent, I hope it brings up the enterprises in supply chain attach importance to disruption management.