TITLE:
A Replenishment Model of Dual Sales Channels with Lateral Transshipment Problem Considering Consumer Behavior
AUTHORS:
Dan Huang
KEYWORDS:
Dual Sales Channels, Consumer Behavior, Lateral Transshipment, Replenishment Model
JOURNAL NAME:
iBusiness,
Vol.9 No.4,
December
12,
2017
ABSTRACT: We study a replenishment model that the retailer
shares his leftovers on his direct online
sales channel and traditional retail channel. When one of the sales
channels is out of stock and another has leftovers, the latter shares its
leftovers with the former. Commonly, there
is competition between two channels. Therefore, we take the consumers’
behavior including retailer inconvenience cost of traditional retail channel, and risks and delivery lead time of direct
online sales channel into consideration. Then, we use the function of
consumer utility to measure the Demand
distribution function. Furthermore, the optimal replenishment models in independent decision-making and in
lateral transshipment are established separately. Then the results of
two models are compared by order quantity
and retailer’s profit. What’s more, it is found that lateral transshipment between dual sales channel inventory can
reduce the order quantity and increase the
retailer’s profit when the prices and demand distribution satisfy certain conditions. Finally, the numerical analysis
of the model is carried out. The validity of the research results is
proved by examples.