Research on Profit Division in Supply Chains Based on Stackelberg Game with Buyback Contract

Considering a two-stage supply chain consisting of a supplier and a retailer,a Stackelberg game of profit division is established. With buyback contract employed in the game as a profit division approach,equilibrium process is analysed when the supplier is in the dominating station. Equilibrium analysis shows that the retailer can only get the reserved profit,while the supplier can obtain all the profit leaved,and the parameters made by supplier can also coordinate the supply chain to the optimal level.