200 Revenue Sharing Contract Model of Supply Chain with One Manufacturer and N Retailers

Revenue sharing in the supply chain containing one manufacturer and N competing retailers was researched under the basic Cournot oligopoly model. Based on presenting the equilibrium price, output and profits when supply chain members come to an agreement, in the case of different combinations among competitive retailers, how the unit production cost of the manufacturer to affect allocation policy in members of the supply chain was discussed. And the approach of finding out the optimal allocation strategy was obtained. The results were that the manufacturer in the core of supply chain should make an appropriate cost planning to ensure the expected revenue of each member in the supply chain.