Thecoordinationproblemofasupplychaincomprisingonesupplierandoneretailerundermarketdemanddisruptionisstudiedinthisarticle.Anovelexponentialdemandfunctionisadopted,andthepenaltycostisintroducedexplicitlytocapturethedeviationproductioncostcausedbythemarketdemanddisruption.Theoptimalstrategiesareobtainedfordifferentdisruptionscaleunderthecentralizedmode.Forthedecentralizedmode,itisprovedthatthesupplychaincanbefullycoordinatedbyadjustingthepricediscountpolicyappropriatelywhendisruptionoccurs.Furthermore,theauthorspointoutthatsimilarresultscanbeestablishedformoregeneraldemandfunctionsthatrepresentdifferentmarketcircumstancesifcertainassumptionsaresatisfied.
