Disruption management for a dominant retailer with constant demand-stimulating service cost

In this paper, we consider coordination model of a one-manufacturer and multi-retailer supply chain with a dominant retailer’s sales promotion opportunity and possible demand disruption. An appropriate contractual scheme can be used to fully coordinate the supply chain even if the demand disruption occurs. In our study, we also analyze how the demand disruption affects the coordination mechanism. When the demand is disrupted, the manufacturer...