An extended supply chain revenue-sharing contract with consideration of influence of order time

For supply chain coordination, order time is not embodied in classic revenue-sharing model. But, in the time-based competitive age, time becomes the focus of the competition, and the influence of order time cannot be neglected. A supply chain revenue-sharing contract in which the channel cost and the forecast market demand rely on order time is discussed in this paper, and the validity of supply chain channel coordination by revenue-sharing. It is proved that the extended revenue-sharing contract can coordinate the supply chain effectively; further, the optimal decision model is established. In addition, the effect of demand distribution parameters on the optimal solution are given; the extended revenue-sharing contract is compared with classic revenue-sharing contract by a numerical instance, and the result shows that the former can better the profit of supply chain actors.