Consider Supply Chain Coordination And The Ripple Effect Of The Disturbance Situations

In recent years, under the traditional operation mode become increasingly unsuitable to the changing requirements of growing diversifications. Enterprises increasingly focus on core technology. The other can be achieved through supply chain integration of the virtual business purposes, such as outsourcing activities. With the communication of the supply chain management concept, supply chain risk has become the focus of attention by many enterprises. In competition conditions, the supply chain becomes very fragile and complex, but at present is the high incidence of emergency period. If the enterprise has not been carried out pre-effective mechanism, the emergencies coming, the companies will bear a huge risk.In this paper, we consider a two-stage supply chain, there involving one supplier and one retailer. We assume that supplier and retailer is independent decision-maker, retailer is facing a demand function with non-linear demand function, the supplier, production a product to retailer with a wholesale price, retailer then to consumers with a certain price. The product life cycle is very short (such as consumer electronics products), so the time considers a single supply problem. Study discussed the supply chain coordination with the retailer facing demand disruption and supplier's production costs faced by the case of cost disruption, and measure ripple effect of the supply chain in such circumstances the use of disruption management and management do not use it.The study found that in the event of emergencies, if the demand and production cost disruptions will cause changes in production plans, and the deviation from the production plan will have a number of other costs, known as the deviation cost, we will take into account when the cost of deviation, the existence of the original production plan must be robustness. When demand and production cost disruptions caused by the unexpected events at the same time, the supply chain through the all-unit wholesale quantity discount policy and capacitated linear pricing policy.The study also found that under the disruptions, as the Stacklberg game leader, supplier adopt as a strategy and not as a direct impact on the size of supply chain ripple effect, therefore, the supply chain leader can adjusting the profits coefficient of the supply chain to control the size of ripple effect, in order to ensure the relative stability of the supply chain, thus reducing the risk of the supply chain.If the supplier in the supply chain can maximize his profit for their own consideration, the supplier can choose to implement the act or omission of strategy. When demand and production cost disruptions at the same time, supplier is willing to change their tactics. If the demand and production cost disruptions in a negative way, the interest of supplier is reduced. When demand and production cost at a negative disruptions, Retailer hope that the supplier to take the strategy, and hope that supplier do not take the way of strategy in the demand and production cost disruptions at a same way. When the demand and production cost disruption in a different direction, the supply chain decision-making will become more subtle, but the idea of disruption management will bring increase profits to both side of supply chain.