Abstract
The purpose of this paper is to investigate a one-supplier-one-retailer supply chain that experiences a disruption in demand, production cost and logistics cost during the planning period. In this paper, we analyze the coordination when demand, production and logistics cost are disrupted simultaneously. We find that the logistics cost is very important for coordination price. The coordination price changes quickly under logistics cost disruption. We also introduce a price-sensitive coefficient for products on how to affect the supply chain profit after coordination. We find that this coefficient is the key for coordination validity. Using this paper’s method, we may be realizing the maximum potential profit under all conditions.
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