Research On Profit Distribution In Three-Level Supply Chain Under The Mode Of Supply Hub

The competition is between the supply chain and the supply chain during the market competition of 21st century. The competence of the supply chain depends on the cooperation of enterprises on the supply chain. And one of the main influence factors of partnership is the problem of profit sharing. Relevant theories methods of modern supply chain management and economics are employed in this paper to study the profit distribution of the coordination among the enterprises in three-level supply chain and establish the rational model of profit distribution from the angle of the mode of supply hub.The paper sets out from the research circumstance in related field of supply chain, analyzes why the mode of supply hub appears, how to manage and operate the mode, and the partnership of manufacturer, supply hub and supplier. The various methods and models of profit sharing are discussed. Then under the mode of supply hub the model of profit distribution is established which is based on the multilevel programming of three-level supply chain. Owing to the moral hazard due to every enterprise making its own profit best inevitably, their models of incentive mechanism are established with employing agency theory. The coordination of profit distribution is further consummated in the three-level supply chain under the mode of supply hub.