Abstract: A bargaining cooperative game model for assembletoorder (ATO) supply chain composed of a final product manufacturer and two suppliers is proposed to study the component production and replenishment policy and the corresponding profitsharing policy. The effect of participants bargaining power chain on the optimal solution is analyzed. It is found that ATO supply chain should raise the component production with the rise of the final product price, and reduce it with the rise of assembly cost of finished product or production cost of components. With the improvement of the bargaining power of final product manufacturer to one supplier, the transfer price of components and profits of this supplier is reduced, while those of another supplier are increased at the same time. The expected profits of the final product manufacturer increase if its bargaining power is stronger than another supplier, and otherwise it reduces.