Abstract:The basic model on the supply chain coordination with one dominant retailer and one fringe retailer is studied
under the deterministic environment, while the optimal policies in the integrated and decentralized supply chains are proposed when the demand disruption happens randomly under the emergency environment. It is proved that linear quantity discount contract can be used to coordinate supply chain efficiently whether the stochastic disruption of the demand exists or not. Correspondingly the optimal per-unit wholesale price, the optimal linear discount slope and the scope of transfer payment are given. Finally, it are simulated and analyzed that the optimal retail price, the optimal total order quantity and the optimal per-unit wholesale price change with the demand disruption magnitude and its probability.