We study a replenishment model that the retailer shares his leftovers on his\ndirect online sales channel and traditional retail channel. When one of the sales\nchannels is out of stock and another has leftovers, the latter shares its leftovers\nwith the former. Commonly, there is competition between two channels. Therefore,\nwe take the consumers� behavior including retailer inconvenience cost of\ntraditional retail channel, and risks and delivery lead time of direct online sales\nchannel into consideration. Then, we use the function of consumer utility to\nmeasure the Demand distribution function. Furthermore, the optimal replenishment\nmodels in independent decision-making and in lateral transshipment are\nestablished separately. Then the results of two models are compared by order\nquantity and retailer�s profit. What�s more, it is found that lateral transshipment\nbetween dual sales channel inventory can reduce the order quantity and increase\nthe retailer�s profit when the prices and demand distribution satisfy certain conditions.\nFinally, the numerical analysis of the model is carried out. The validity of\nthe research results is proved by examples.
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