Abstract: This paper discusses identification of the emergency state and the optimal algorithm of dispatch scheme for a supply chain system (SCS) with continuous demand. In a collaborative supply chain network, a manufactory may receive raw material from several suppliers. Once these suppliers are not able to meet its demand completely, the SCS is then in a state of emergency. What this paper has studied indicates that there exists an efficient method to judge whether the SCS is in this kind of state. Furthermore, this paper presents an optimal algorithm and the corresponding mathematic proof for the system not in an emergency state.