Research On Iron Ore Supply Chain Revenue Sharing Contract

China is the world’s largest steel producer and consumer, but iron ore resources are relatively poor. Due to the development of the steel industry in recent10years, China’s iron ore supply is dependent on overseas situation more and more serious. In recent years, the international iron ore benchmark prices rose by270.52%over the six years so soaring price of iron ore to iron and steel enterprises in China has brought the huge cost pressure, to the health of the future development are also covered with a thick shadow.As a result, a stable supply of iron ore resources alliance is very urgent.In this article, through analysis the current situation of the development of iron ore, through the distribution of the present situation, the supply and demand situation, and the transportation, point out that China’s steel industry resources grow weakly and the root cause of the development of the whole steel industry. And through the comparison and analysis of supply chain contract model, that the supply and demand in the international iron ore trade union matters revenue sharing contract model.This model can make the supply and demand both sides share risks, revenue sharing, are also more in line with the game strategy of coordination between enterprises in reality.Based on the supply and demand of iron ore alliance revenue sharing contract model analysis of supply and demand both sides of the profit level, and points out that in the middle of the transport enterprises through this model could also benefit.Considering shortage of loss and the rest of the salvage value and the cost of production related cases, the revenue sharing contract of supply chain coordination model is established, it is concluded that the retailer’s optimal decision behavior and the scope of the contract parameters.