Abstract: The paper analyzes the optimal coupon offering mode and the optimal product price,coupon face value and coupon valid period for a two-echelon supply chain with one manufacturer and one retailer.Also we provide the optimal policy for the supply chain coordination.By comparing two coupon offering mode, we find that the retailer offering mode can improve the profit of manufacturer and supply chain.However, the profit of the retailer will decrease with this mode under certain condition.We provide the cost allocation based contract to achieve the supply chain coordination,which is with retailer offering mode,the winwin can be achieved by manufacturer sharing part offering cost.The results show that by adjusting the cost sharing rate the cost allocation contract can improve the profit of the manufacturer and the whole supply chain while ensure the benefit of the retailer.

Key words: coupon, offering mode, pricing, supply chain coordination