Abstract:Analyzes the effect of promotional effort factors of a manufacturer on the supply chain coordination by revenue-sharing contract in three-level supply chain. The study indicates that as the manufacturer only obtains a part of the benefits from its promoting activities and bears whole activities cost, thus the revenue-sharing contract is unable to coordinate supply chain. For that, proposes the introduction of the quantity discount policy in one transaction or two transactions of the three-level supply chain to solve the problem that the revenue-sharing contract unable to coordinate, and regain the supply chain coordination. Optimizes the model and gives the method to determine the optimal contract parameters. Finally, illustrates the model through a numerical example.