Spot market coping with supply disruption under supply chains competition

This paper constructs a model using the spot market to cope with supply disruption under supply chains competition. We discuss the member's optimal decision problem of two competitive supply chains under the case without supply disruption, and analyze the impact of disruption parameters to the competitive supply chains and its members under supply disruption. We also discuss the efficiency of emergency replenishment strategies on spot market to cope with supply disruption. Finally, taking the retailers as research object, the conditions to coordinate the supply disruption on spot market are given through the comparison of supply chain profits before and after coordination. We show that the loss caused by supply disruption can be reduced but can't be removed through the coordination mechanism on spot market under supply chains competition.