Optimization and Coordination of Supply Chain With Revenue Sharing Contracts Under Supply and Demand Uncertainty

Under the environment of supply and demand uncertainty, this paper studies the optimization and coordination of supply chain's operation based on revenue sharing contract. It constructs a supply chain's decision-making model with revenue sharing contracts when considering the supply uncertainty. Firstly, we derive the retail's optimal procurement policies, the supplier's optimal purchasing polices of semi-finished products, and the production polices of finished products. Secondly, the optimal strategies are compared between decentralized and centralized decision-making conditions, and the supply chain coordination conditions are derived under supply and demand uncertainty. Finally, we show the interactive relationship between supply uncertainty and revenue sharing contracts parameters when the supply chain is coordinated.