As for the supply chain consisting of a manufacturer and multiple competing retailers, the disruption management decision is considered for the demand disruption that both the investment sensitivity coefficient and the investment-elasticity are changed simultaneously. Meanwhile, the corresponding solutions are given for different cases of the disruption, and the characteristics of the solutions are analyzed. The production plan is proved to he robustness under certain conditions, and the production plan of the coordination strategy is investigated for the disruption with appropriate contractual arrangement, i. e. , a subside rate schedule. Mutual restraints exist between the changed investment sensitivity coefficient and the investment-elasticity when the coordination mecha- nism is used. And the more the number of the retailers in the system, the more the subside provided by the suppler on the coordinaton strategy.
