Abstract: The channel coordination mechanism of the supply chain composed of producers and distributors under uniformly distributed market demand is studied in this paper. A bonus-penalty mixed contract model is designed with the coordinating factor: bonus, penalty, bonus ratio and penalty ratio. The mixed channel coordination mechanism is also discussed. An example verifies the coordination of four factors in channel coordination. Also some findings are proposed based on the result of the example.

Key words: channel coordination, penalty contract, bonus contract, coordination mechanism