Research on Retailer-driven Revenue-sharing Contracts Model under Manufacturers Competition

There is a universal meaning for studying the contract negotiations to improve the performance of the supply chain structure, which consists of competing multi-manufacturers and an independent and common retailer. Based on the characteristic that the retailer has stronger bargaining power, a Stackelberg game model where the retailer is a leader and the manufacturers are followers, was established. Then, Proofs for the game between manufacturers' production strategies existing a unique optimal symmetric nash equilibrium solution, and parameters' game on the revenue-sharing contracts existing a unique equilibrium solution, were provided. The relationship of decisions between decentralized and centralized supply chain under revenue-sharing contracts was discussed. The impacts of system parameters and products' substitutability level on the supply chain performance were further analyzed and verified through a simulation experiment at last