Closed-loop Supply Chain Coordination under Disruptions with Return Policy and Buy Back Contract

For a closed-loop supply chain consisting of one manufacturer and one retailer who faces stochastic market demand,it can be coordinated with return policy and buy back contract when manufacturer is risk neutral and retailer is risk chasing under some setting.But this coordination may be broken off by an emergent event,which maybe makes the demand disruptions,i.e.,it makes the demand distribution different from the assumption needed to achieve original closed-loop supply chain's coordination.But the taking back of used products is not affected by the emergent event.In this paper,an optimal strategy for closed-loop supply chain to the disruptions is given and,as optimal response for the closed-loop supply chain to the disruptions,an adjusted buy back contract which can coordinate the closed-loop supply chain under disruption is proposed,And some managerial insights are provided.Finally,a numerical example is given to validate the findings.