Research on Cooperation Profit Allocation in Three-Stage Supply Chain Based on Distribution Channel

Nowadays, distribution channel revolution has brought about enormous channel organization form change. And the authority leader in channel may also change. Members in the downsteam supply chain struggle for the channel power and more cooperative profits during the cooperation, which seriously affects the efficiency and effectiveness of the whole channel, even the stability and evolution of supply chain. So it is necessary to allocate cooperative profit reasonably among members to improve the cooperative relationship between members and maintain the stability of supply chain. Based on the distribution channel structure change, this paper builds a profit allocation model of three-stage supply chain with mutidirection and principal-subordinate. It uses Stackelberg game to calculate the model. And it explains how every member´s profit and channel profit change following the cooperation coefficient lambda. Then, according to the different situations economic meaning of lambda is analyzed. Finally, we find when lambda between 2/3 and 5/6, cooperation relationship is easy to build and develop.