The Study of Supply Chain with a Revenue-sharing Contract under RFID

In the paper, we considered the model that contains a retailer and a supplier. We study the change of the profits that each party receives from the wholesale price contract to the revenue-sharing contract under RFID technology. It is show that the retailer always benefits from the transition to revenue sharing by capturing a portion of the incremental channel profit generated bythe complete elimination of double marginalization while the supplier's profit decreases. Moreover, we can find that revenue-sharing contract can coordinate the supply chain under certain conditions; this is meaningful to the company who decide to use what kind of contract in the supply chain management. Finally, the findings of this research are illustrated in a numerical example, then, a summary of the findings are given.