Study On Supply Chain Emergency Management With Demand Disruptions

With the development of SCM theories and practice, more and more enterprises pursue the operation principle of lean production or just in time. Although, these kinds of scientific management methods will save cost and improve economic performance for enterprises, it can also lead the entire supply chain into fragility.In the last few years, various kinds of unpredictable nature disasters or human error accidents lead to extreme uncertainties faced by the supply chain, it may cause the demand fluctuations of downstream firms, production interruption or delay, and irregular supplies and price shocks of upstream firms, leading to the violation of optimal decision making according to the original plan of the entire supply chain. Therefore, it not only destroys the originally coordinated supply chain system, but also leads to the problems of unable to keep up with demand and a large backlog of inventory. It is thus clear that implementing emergency management is very important for supply chain to cope with emergencies.This thesis focuses on the coordination mechanism of supply chain emergency management in the background of downstream demand undergoing disruptions in the short-term. The main content and the structure of the thesis are as follows:Firstly, employs the qualitative research methods based on supply chain emergency management system to figure out the elements, and characteristics, and to summarize the concrete measures under the demand disruptions from the viewpoint of SCM. Secondly, in a supply chain system with one supplier and one retailer, the results show that nonlinear quantity discount mechanism can serve as a coordination mechanism to cope with demand disruption. The discount rate is influenced by demand disruption amplitude and profit sharing ratio. Finally, as the core of this thesis, a more complex system with one supplier and multi-retailers is considered. Based on the hypothesis that fringe retailers would have a random disturbance on the price and service decision, both the linear quantity discount mechanism and the nonlinear quantity discount mechanism are investigated under emergency management, and then analyze the influence of the mechanisms on profit of supply chain partnership respectively.In this thesis, we do study on supply chain emergency management with demand disruptions and investigate the effects of quantity discount mechanism on emergency coordination. Model deduction and numerical simulation are conducted to prove the feasibility and its guarantee effect on profit-increasing of nonlinear quantity discount mechanism, which makes the results of the research have certain theoretical reference value in emergency management and regular operations for practical situation.