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The demand disruption management problem for a supply chain system with nonlinear demand functions

  • Minghui Xu
  • Xiangtong Qi
  • Gang Yu
  • Hanqin Zhang
  • Chengxiu Gao
Article

Abstract

This paper addresses the problem of handling the uncertainty of demand in a one-supplier-one-retailer supply chain system. Demand variation often makes the real production different from what is originally planned, causing a deviation cost from the production plan. Assume the market demand is sensitive to the retail price in a nonlinear form, we show how to effectively handle the demand uncertainty in a supply chain, both for the case of centralized-decision-making system and the case of decentralized-decision-making system with perfect coordination.

Keywords

Supply chain management disruption management demand uncertainty 

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Copyright information

© JSSSE 2003

Authors and Affiliations

  • Minghui Xu
    • 1
  • Xiangtong Qi
    • 2
  • Gang Yu
    • 2
  • Hanqin Zhang
    • 3
  • Chengxiu Gao
    • 1
  1. 1.School of Mathematics and StatisticsWuhan UniversityHubeiP.R. China
  2. 2.Department of Management Science and Information SystemsThe University of TexasAustinUSA
  3. 3.Academy of Mathematics and System SciencesThe Chinese Academy of SciencesBeijingP.R. China

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