Supply Chain Coordination With Contract To Reduce Lost Under Disruption Risk

As the complexity of supply chains increased, any disruptions may result in huge lost. So how to manage supply chains under disruption risk becomes a research focus. We analyze the characters of various disruptions and then induce insurant contract and option contract in order to coordinate the supply chain. We build some supply chain models to analyze how to design the contract parameters so that the performance of the supply chains could be improved so that the supply chain could be finally coordinated. At the same time, we use numerical analysis to illustrate it. Finally, we discuss the recent dilemma of agricultural product sales and try to apply these two contracts to solve the problem.