Revenue Coordination Contract Based on Stackelberg Game in Upsteam Supply Chain

This paper mainly discusses a problem of revenue coordination in an upsteam supply chain, in which a supplier and a manufacturer are included, based on the balance of inventory cost and transportation cost. A two-stage stackelberg game model is erected, aiming at cost optimization. The optimality and equilibrium solution of the model are analyzed, too. the interaction of decision variables as well as that between decision variables and cost parameters are analyzed and demonstrated at last. It provides theory proof to establish the manufacturer´s stimulating policy and the supplier´s delivery policy.