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| Coordination of Dualchannel Supply Chain with Demand Disruptions |
| CAO Erbao,ZHENG Jianzhe,MA Yujie,LAI Mingyong |
| 1. Hunan University, Changsha, China; 2. Hunan Province Key Laboratory of
Logistics Information and Simulation Technology, Changsha, China |
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Abstract This paper investigates the impacts of demand disruption on pricing decisions and coordination in dualchannel supply chain. Firstly, we adopt a revenue sharing contract to coordinate the dualchannel supply chain without demand disruptions. Moreover, we examine how the dualchannel supply chain is priced and coordinated by solving the Karush KuhnTucker (KKT) conditions of total profit when the demands of retail and direct sale both are disrupted. In the case, we analyze the effects of demand disruptions on prices, quantities and profits and derive the value of knowing demand disruptions in the centralized supply chain, and present the coordinating revenuesharing contracts in decentralized decisions. Finally, the proposed models are further analyzed through numerical examples.
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Received: 08 October 2012
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2014, Vol. 11 
