Study on Supply Chain Coordination Based on Revenue-Sharing Contract with the Option

Abstract

This paper considered the coordination of supply chain. Under the uncertain market demand, the mathematical models of revenue-sharing contract were established, and analyzed the behavior of supplier and retailer who are constrained by the revenue-sharing contract. Under the former models, the mathematical models of revenue-sharing contract based on the option were established. Finally, a numerical example was given to verify that revenue sharing contract can coordinate the supply chain.