In this paper, we design a revenue sharing contract to coordinate pricing and inventory control decisions in a serial supply chain consisting of one supplier, one manufacturer and one retailer. We assume that the retailer faces Poisson demand and his unsatisfied demands will be lost. The retailer applies one-for-one period policy in which he constantly places an order for one unit of product to the manufacturer in a predetermined time interval which results in a deterministic demand for the manufacturer. Solution procedures are developed to find the equilibrium in the Vendor Managed Inventory (VMI) program with a revenue sharing contract, in which no party is willing to deviate from for the sake of maximizing his own profit. Furthermore, we formulate the total profit of the system and obtain the optimal retail price and order cycle for the retailer and the inventory policy of manufacturer which maximizes the supply chain's total profit and at the end we will highlight the revenue sharing contract performance.

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