Supply chain coordination under interruption based on supplier group evaluation

Abstract

Supply chain disruption may bring huge blows to supply chain members. With the expansion of the enterprise scale, the original single supplier model has gradually become a supplier group model, and retailer's evaluation of the supplier group will have an impact on the retailer's decision. The increase in the status of the retailer has led retailers to impose more penalties on disrupted suppliers. Therefore, it is necessary to study the coordination problem of the supply chain when there is a supplier group's evaluation of the retailer and the supplier has the possibility of disruption. On this basis, this paper introduces the revenue sharing + second penalty contract and option contract, and compares the two contracts to provide guidance for contractual choices for supply chain members.