Study on Profit Distribution in Upstream-Supply Chain with Manufacturer Dominating

This article mainly considers the profit distribution method in an upstream supply chain with manufacturer dominating, based on the balance of inventory cost and transportation cost. The profit distribution model is established to study three methods of profit distribution. The distribution coefficient lambda, which is specific and operative, can be got from the model solution. A numerical example is given to compare the three methods. Finally, the suitable case that matches each method is discussed and the implementing effect of each method is compared.