Dual-channel Supply Chain Coordination by Revenue Sharing Contract

This paper established a dual-channel supply chain model composed of one supplier and one retailer, studied the optimal order quantity and profit under the conditions of decentralized decision and centralized decision. We proposed a revenue sharing contract applying to dual-channel supply chain, to encourage the vendors and suppliers to cooperate for the entire supply chain profit maximization. Through empirical analysis, this paper compared the vendors´ and suppliers´ profit changes under different income distribution coefficient.