Research on Supply Chain Coordination under the Price-Sensitivity of Demand

The revenue-sharing contract of supply chain coordination under price-sensitive of demand was studied in this paper. At first, the supply chain coordination model based on revenue-sharing contract was built when the end-consumer demand was price-sensitivity and the residual value of the overplus product was related to its production cost. Then, the optimal decision of the retailer was provided and the calculation formula of the scope of contract parameter was given after analyzing the decision behaviors of the suppliers and the retailer respectively, at last, an example was used to verify the results and the effectiveness of revenue-sharing contract in supply chain coordination is confirmed.