Abstract: This paper studies supply chain coordination issue for product with different price and demand in two stages. Firstly,we establish dynamic models for centralized coordination,decentralized without coordination and decentralized with coordination supply chain system respectively. Secondly,we prove that there exists best solution in the different models,and an improved revenue sharing contract can achieve the performance as the centralized one and allocate supply chain profit arbitrarily among retailer and supplier. Then the method to find the optimal contract parameter after given the scheme to allocate the coordination profit is presented. Lastly,we analyze the effect of different price and demand in two stages on supply chain performance and contract parameter. Numerical illustration indicates that the improved revenue sharing contract makes the supplier and retailer share the market risk and system profit,and achieve Pareto promotion.

Key words: supply chain coordination, price and demand change, dynamic model, revenue sharing