Study on win-win of coordinating supply chain

A two-echelon supply chain for perishable product with one manufacturer and one retailer is considered. We build a combined contract of quantity discount and target rebate, and research the conditions of achieving the supply chain coordination and win-win. Then by the numerical analysis, we analyze its impact on the profit improvement rates of both sides and the sensitivity of the target order quantity T. The research shows that the combined contract of quantity discount and target rebate can properly allocate the increased profit in supply chain. At the same time, it ensures that both sides participate in coordinating the supply chain actively; it can coordinate the supply chain and improve performance much better, and it is more conducive to long-term development of supply chain.