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Academic Journal of Business & Management, 2019, 1(1); doi: 10.25236/AJBM.190113.

Research on Coping Strategies of Supply Disruption under Stochastic Demand


Xin Zhang

Corresponding Author:
Xin Zhang

School of Management, Shanghai University, Shanghai 200444, China


Supply disruptions often appear in supply chain. Using appropriate coping strategies can help firms to compensate the economic losses effectively. In this paper, we construct a supply chain consisting of single supplier and single retailer. By introducing interruption time, we study the coping strategies of retailer after supply disruption under stochastic demand, including taking no countermeasures, assisting supplier in productivity recovery by cost-sharing of productivity recovery and purchasing products to the spot market. Through numerical analysis, we analyze the impact of the interruption time on the retailer's purchase quantity and compare the profit changes of all parties in the supply chain under different strategies, which provides guidance for the enterprises in the supply chain to deal with the supply disruption effectively.


stochastic demand, supply disruption, assistance, spot market, penalty

Cite This Paper

Xin Zhang. Research on Coping Strategies of Supply Disruption under Stochastic Demand. Academic Journal of Business & Management (2019) Vol. 1: 99-112. https://doi.org/10.25236/AJBM.190113.


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