Supply chain coordination under e-business environment

According to various reports, E-business has developed rapidly in China. Under this circumstance, firms should consider whether they need to shift to the E-supply chain environment from the traditional supply chain. In this paper, literature on supply chain coordination are reviewed firstly, then profit function of individual firm of the supply chain and the whole supply chain are modeled, concerning taking investment scale on E-business as a variable and the setting sales quality as a function which depends on both the retail price and investment scale on E-business. Paper analysis these conditions from the traditional supply chain transfer to the E-supply chain, demonstrates that the existence of supply chain´s maximize profits, and analysis the effectiveness of revenue sharing contracts for the supply chain coordination under the E-business environment, finally proposes further research directions.