ABSTRACT
The complexity of supply chains mainly embodies the definite chaos, parallel interactions, and bullwhip effects. The definite chaos is generated by the fixed norms, excluding opportunity factors. The bullwhip effect refers to the enlargement and distortion as the demand changes transmit among supply chain members. These factors result in the complexity of supply chains and increase disruption risk. In terms of the issue of supply chain coordination with demand disruption, Qi et al introduced the notion of management of emergencies. On the basis of the supply chain model with one supplier and one retailer, the hypothesized demand in the model is the linear function of the price, and unit production cost is fixed. The manufacturers are located in the core position in the supply chain, whose upstream suppliers are in charge of providing raw materials and components. Supply chain disruption risk may originate from outside the supply chain system, that is, because of extrinsic variables.
