Profit Distribution Mechanism of Upstream Segment for Centralized VMI & TPL Supply Chain

Based on revenue sharing (RS) contract, the coordination about upstream of the centralized VMI & TPL supply chain is studied. Because the RS contract failure to coordinate the supply chain, an RS contract of risksharing is put forward. However, the contract cannot guarantee optimal Pareto of profit implementation about the member enterprises of supply chain. Finally, the contract is further extended to the RS contract of risksharing on basis of asymmetric Nash negotiation．Research shows that the contract can not only ensure the whole profit to achieve optimal Pareto, but it can also arrive at the optimal Pareto of revenue of all members.