Simulating the supply disruption for the coordinated supply chain

There are many disruptive accidents in the supply chain operations system and achieving the coordination of supply chain is main objective for supply chain research. While disruptive accidents have increasingly influenced the coordinated operation of the supply chain, existing research literature on the supply chain coordination is setting in a stationary environment. The answer for how the disruptive accidents affect the coordinated supply chain is given in this paper. Based on the benchmark supply chain which is coordinated by the negative incentive mechanism, we study the impacts of supply disruption on the supply chain system by using simulation approach in which two different distribution function of random variable are used to express the supply disruption. Comparison between these two simulation results and possible coordination mechanism under the supply disruption are proposed. From the perspective of supply chain risk management, we provide the inspiration for the manager. This work was partially supported by National Natural Science Foundation of China (70501015, 70321001, 7032900). Hui Yu received the Ph.D degree in the system theory from the Chinese Academy of Mathematics and System Sciencs in July 2003. After finishing his postdoctorial work in Tsinghua Universtiy in Oct. 2005, he joined the College of Business and Administion Management in Chongqing Uinverstiy. His main research interests include the supply chain management, disruption management and e-commerce. Caihong Sun received the B.Sc. degree in Mathematics Education from Chongqing High-grade Teacher College, Chongqing, China, in 1996, and the M.Sc. in System Theory from Chongqing Normal University. She is vice Professor of Applied Technical College, Chongqing Technology and Business Univerity, Chongqing, China, and a Ph.D candidate in Technology Economics and Management in Chongqing University. Jian Chen received the B.Sc. degree in Electrical Engineering from Tsinghua University, Beijing, China, in 1983, and the M.Sc. and the Ph.D. degree both in Systems Engineering from the same University in 1986 and 1989, respectively. He is Professor and Chairman of Management Science Department, Director of Research Center for Contemporary Management, Tsinghua University. Dr. Chen has over 180 technical publications and has been a principal investigator for over 30 grants or research contracts with National Science Foundation of China, governmental organizations and companies. His main research interests include modeling and control of complex systems, decision support systems and information systems, forecast and optimization techniques, supply chain management, E-commerce. He is a senior member of IEEE and a member of INFORMS. He serves as Chairman of the Service Systems and Organizations Technical Committee of IEEE Systems, Man and Cybernetics Society (2002-), a member of the Administrative Committee of IEEE Systems, Man and Cybernetics Society (1998–2000), a member of the Standing Committee of Systems Engineering Society of China, China Information Industry Association and Decision Science Society of China. He is the recipient of Science and Technology Progress Awards of Beijing Municipal Government, 2000 and 2001; the Outstanding Contribution Award of IEEE Systems, Man and Cybernetics Society, 1996; Science and Technology Progress Award of the State Educational Commission, 1994; Young Scientist Award of China, 1992. He is an associate editor of “IEEE Transactions on Systems, Man and Cybernetics: Part A” and “IEEE Transactions on Systems, Man and Cybernetics: Part C”, and serves on the Editorial Board of “International Journal of Information Technology and Decision Making”, “Systems Research and Behavioral Science” and “International Journal of Electronic Busines”. He is the Secretary General of the 1996 IEEE International Conference on Systems, Man and Cybernetics in Beijing, Co-chair of the IPC of the 3^rd (1998) and 4^th (2003) International Conferences on Systems Science and Systems Engineering, and Chair of the 1^st Asian eBiz Workshop in 2001, Co-chair of 2^nd, 3^rd, 4^th and 5^th Asian eBiz Workshop, Co-chair of the International Conference on Global Supply Chain Management in 2002 and the International Conference on Service Systems and Service Management in 2004, Chair of the 4^th International Conference on Electronic Business in 2004.