The determination of channel product transfer price under different cost functions

In a two-echelon supply chain with a manufacturer and n-1 sellers, first of all, the paper proves the conclusion that the channel product transfer price will not make the profit of every member in the supply chain maximum when the supply chain achieves profit maximization, in turn from the perspective of the profit distribution, according to the principle that the unit product cost´s profits are equal, puts forward the method of determining the channel product transfer pricing under two cases of the cost functions of the supply chain members known and unknown, and gives the corresponding formula, thus makes profits distribution among members in the supply chain fair and reasonable, which will urge every member in supply chain both production enthusiasm and sale enthusiasm.