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Research on revenue-sharing contract for a three-level supply chain with consideration of influence of order time

This paper first reviews a traditional three-level supply chain with revenue sharing contract which can coordinate the entire supply chain, then studies a revenue sharing contract with consideration of the influence of order time with the profit maximization as its decision-making optimizing targets. Meanwhile, manufacturer, distributor, retailer and the whole supply chain's profit model have been established. We analyze the optimality and equilibrium of this model and demonstrate the availability of channel coordination in a three-level supply chain with revenue sharing contract. Finally, through numerical analysis we discuss the impact of the changes of ordering time, salvage value and the mean of market demand on the optimal order quantity and profit of the supply chain system.