Assuming that the realized demand is determined by the inventory level,a two-part revenue sharing contract of one supplier and one retailer is analyzed under the circumstance of demand disruption(the disruption cost occurs at the supplier).Based on the centralized optimization,the profits of the two members are maximized in sequential optimization though a two-part revenue-sharing contract.The result shows that when the demand disruption occurs,if the degree of disruption is within some range,the ordering and manufacturing plans need not be changed,while only the revenue sharing fraction for the retailer should be diminished;if not,both the plan and the revenue sharing fraction should be changed for the possible coordination of the supply chain.Finally,numerical illustrations of the contract for various scenarios are given.
