Abstract: The revenue-sharing contract of supply chain coordination under price-sensitive demand is studied in this paper.At first,the revenue-sharing contract coordination model of supply chain is built when the end-consumer demand is price sensitive and the scrap value of the overplus product is related to its production cost.Then,the optimal decision of the retailer is suggested and the calculation formula of the range of contract parameter φ is given after analyzing the decision behaviors of the supplier and the retailer respectively,At last,an example is used to verify the results and the effectiveness of revenue-sharing contract in suoolv chain coordination was confirmed.

Key words: supply chain, price-sensitive demand, revenue-sharing contract, design