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This paper studies the optimal decision of retailer and supplier based on the shortage of market supply. Compared with the normal supply situation, it is found less optimal order quantity from the retailer; and that the retailer’s optimal order quantity decreases with the increasing of wholesale prices, increases with the increasing of the retail price and residual value. The supplier can increase the order quantity of the retailer through the buyback contract, but cannot coordinate the supply chain through the buyback contract. Keywords-component; disruption; shortage; buyback contract

Research on Supply Chain Decision Making Based on the Shortage of Market Supply