Countering demand disruptions: the role of resilience investment and contract design in food supply chains

To address the impact of demand disruption risks on dual-channel food supply chains, this paper constructs a two-echelon supply chain Stackelberg game model comprising a single supplier and a single retailer. Treating the supply chain resilience investment level as an endogenous decision variable, it systematically analyzes its effects on system profit and channel coordination under four scenarios: decentralized decision-making, centralized decision-making, cost-sharing contract (CS), and a composite contract combining cost-sharing and revenue-sharing (CRS). The research results show that although resilience investment entails upfront costs, it effectively enhances the probability of the supply chain maintaining normal operations during disruptions, thereby significantly increasing overall profit. Among these contractual mechanisms, the CRS contract, through its dual incentive approach of “cost-sharing + revenue-sharing,” demonstrates the optimal coordination effect in promoting upstream and downstream collaborative investment and alleviating the “double marginalization” problem. Further numerical simulation analysis indicates that the resilience investment efficiency coefficient (λ) has a positive impact on profit levels and resilience investment intensity. In contrast, the impact coefficient of resilience investment on market demand (η) exhibits an inverted U-shaped relationship with profit, pricing, and investment level. This study provides a theoretical basis for food enterprises to scientifically formulate resilience investment strategies and design contractual mechanisms to achieve risk resistance and system synergy in the context of demand disruptions.

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Publication Details

Journal
Frontiers in Sustainable Food Systems
Published
2026-02-16
DOI
https://doi.org/10.3389/fsufs.2025.1715345
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
Field-Weighted Citation Impact
0.00

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article

Countering demand disruptions: the role of resilience investment and contract design in food supply chains

Lin Lu, Chaoling Li, Yong Li, Jun Lu et al.
Frontiers in Sustainable Food Systems
Supply Chain Resilience and Risk Management
article

Countering demand disruptions: the role of resilience investment and contract design in food supply chains

Lin Lu, Chaoling Li, Yong Li, Jun Lu, Minfu Yuan, Q. M. Ma, Ruihai Dong, Siyi Mao, Zubai Jiang, Kai Kang
article en

Abstract

To address the impact of demand disruption risks on dual-channel food supply chains, this paper constructs a two-echelon supply chain Stackelberg game model comprising a single supplier and a single retailer. Treating the supply chain resilience investment level as an endogenous decision variable, it systematically analyzes its effects on system profit and channel coordination under four scenarios: decentralized decision-making, centralized decision-making, cost-sharing contract (CS), and a composite contract combining cost-sharing and revenue-sharing (CRS). The research results show that although resilience investment entails upfront costs, it effectively enhances the probability of the supply chain maintaining normal operations during disruptions, thereby significantly increasing overall profit. Among these contractual mechanisms, the CRS contract, through its dual incentive approach of “cost-sharing + revenue-sharing,” demonstrates the optimal coordination effect in promoting upstream and downstream collaborative investment and alleviating the “double marginalization” problem. Further numerical simulation analysis indicates that the resilience investment efficiency coefficient (λ) has a positive impact on profit levels and resilience investment intensity. In contrast, the impact coefficient of resilience investment on market demand (η) exhibits an inverted U-shaped relationship with profit, pricing, and investment level. This study provides a theoretical basis for food enterprises to scientifically formulate resilience investment strategies and design contractual mechanisms to achieve risk resistance and system synergy in the context of demand disruptions.

Frontiers in Sustainable Food SystemsVol. 9
Nanjing University of Information Science and Technology (CN), China Tourism Academy (CN), Guangxi Normal University (CN), Guangzhou Institute of Applied Software Technology, Chinese Academy of Sciences (CN), Institute of Software (CN), Guangzhou Electronic Technology (China) (CN), Zhejiang Medicine (China) (CN), Nanjing University of Aeronautics and Astronautics (CN)
Division of Graduate Education
Openalex Percentile: Top 55%
Supply Chain Resilience and Risk Management
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