Abstract: This paper analyzes the pricing and inventory coordination problems in mass customization supply chains with uncertain, price-dependent and substitutable demands.The manufacturer produces two kinds of products, i.e.custom products and common products.Common products are sold by a retailer, and custom products are directly provided by the manufacturer according to customers'orders.We analyze and compare the strategies made in centralized and decentralized supply chains.A kind of buyback contract based revenue-sharing is designed.We show that the price of custom products, inventory of common products, and supply chain profit in the decentralized supply chain are lower than those in the centralized one.We demonstrate the effectiveness of the buyback contract based revenue-sharing.

Key words: mass customization, product pricing, supply chain coordination, buyback contract based revenue-sharing