Abstract: In this paper, a trilateral supply chain (TSC) mode is proposed for the production waste recycle process by combing the horizontal and vertical supply chains. For the imbalance situation of multilateral relationship between supply and demands in multiproduct and multimarket environment with uncertainty, optimalcentralized decision making and optimaldecentralized decision making with dual masterslave mode in TSC are analyzed, respectively. Results show that: 1) the TSC mode is feasible; 2) the centralized decision making is superior to the decentralized decision making; and 3) revenuecost sharing contract is an efficient policy to maximize returns of the system and realize “winwin” between the members in the supply chain. Also, the utilization of minusprice system in the TSC achieves a reasonable distribution of benefits in the production waste recycle process.

Key words: trilateral supply chain (TSC), related supply chain (RSC), dual master-slave mode, revenue-cost sharing, minus-price system