The Exploration of the Revenue Distribution Based On Revenue-sharing Contract of Supply

With the development of informatization and the commodity economy, the coordination in supply chain becomes more and more important, in addition, revenue-sharing contract is an efficient method to motivate members of supply chain to coordinate. This paper analyzed the revenue-sharing contract modes without supply price, and then came up with a way to calculate revenue distribution fraction based on costs and profit rate on costs. Later, this paper analyzed the decentralized control mode to explore the situation when both the supplier and the manufacturer can earn the optimal profits. Finally, by comparing the revenue-sharing contracts and the non-cooperative modes, there came up with a conclusion that the Revenue-sharing Contract can not only raise the profits of whole supply chain but also each member.