The three-stage supply chain coordination by revenue-sharing contracts

In the three-stage supply chain, which is made up of manufacturer, distributor and retailer, when the market demand can be not determined, but is relevant with the market price, the revenue-sharing contracts coordination is studied in this paper. The order decision model is built which could meet the channel coordination and by which each company in the supply chain could achieve the win-win. At last, when the total profit of the supply chain is not changed, the paper testify through the numerical example that the coordination of the whole supply chain depend on the cost structure of the system, the reasonable choice of contracts parameter could achieve the win-win of each company and in the reasonable range the choice of contracts parameter is relevant with the charge ability of companies.