Research on Inventory Sharing and Pricing Strategy of Multi-channel Retailer with Channel Preference in Internet Environment

Abstract

With the development of the computer technology, many retailers sale the products not only in the entity shop, but also in the online shop. The network channel brings a lot of convenience. However, it also produces the channel conflict. In the dual channel supply chain, the retailers are in a passive position. Therefore, they begin to use the optimal dynamical pricing strategy to determine the price of the products. At the same time, the retailers obtain the greater benefits according to reduce the inventory cost. Thereby, in this paper, considering the online channel preference, we study the inventory strategy and the pricing strategy of the products in the dual channel. And then we propose a shared inventory and a dynamical pricing strategy. In addition, we study the influence of the related parameters on the profit of the retailers. At last, the numerical analysis shows that the shared inventory and the dynamical pricing strategy can bring more profits for the retailers.