A Dual Channel Coordinated Supply Chain With SSMD Policy and Shortages
Recently, industries are more concerned about more than one supply channel as dependency on only one channel may not be profitable in modern business environment. In this paper, a dual channel supply chain management is considered with single manufacturer and single retailer. The industry manager incorporates two different strategies as traditional retail channel and online channel. In traditional channel, manufacturer uses single setup multiple delivery policy to transport items to the retailer whereas, in online channel, only customized product is sold directly to the customers. The online channel follows make to order policy which considers shortages. The mathematical model is constructed to maximize the profit of the centralized chain. The model is analysed with numerical experiments and graphical analysis.