With the rapid development of contemporary e-commerce, there are now multiple sales channels in the supply chain. At the same time, frequent natural disasters, terrorist attacks, and economic disasters have increased the risks from disruptions in supply chain transportation. Cargo transportation insurance is an important tool for managing transportation disruptions in the supply chain. Based on a secondary supply chain, this paper analyzes an expected profit model for a manufacturer's decision, in a dual-channel supply chain, to purchase cargo transportation insurance against transport disruptions. It explores the impact of manufacturers with insurance on the expected profits in the supply chain. The research reveals that cargo transportation insurance can effectively reduce losses caused by transportation disruptions. In addition, the results show that, if transportation insurance is purchased and the possibility of transportation disruption exists in both channels, the total profit of the supply chain under decentralized decision is higher than its profit under centralized decision.
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