Abstract:The pricing competing and channel coordination strategies in a one manufacturer one retailer dual channel supply chain under demand disruptions are studied. By solving the Kuhn Tucker conditions of the optimization problem, the centralized dual channel supply chain’s optimal pricing and production decisions were obtained under regular operation and demand disruption, respectively. Moreover, an improved quantity discount mechanism to coordinate the decentralized dual channel supply chain with demand disruptions is presented. It is found that different demand disruption scenarios and consumer acceptance of e channel scenarios have significant effects on the centralized dual channel supply chain’s optimal pricing, production decisions and coordination mechanism, moreover, the greater the magnitude of variation in demand disruption is，the greater the profit differential of knowing demand disruptions is. Finally, numerical examples are given to demonstrate the effectiveness of the model.
