Research Article

Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing

Table 2

Notation definition.

SuperscriptsDecentralized , centralized , partial buyback contract
SubscriptsRetailer , supplier

Decision variablesOrdering quantity , inventory level
Sales effort level

ParametersCritical value of demand
Channel sales price
Consumer switching rate
Cost factor of sales effort
Free riding coefficient of the supplier
Elasticity coefficient of market demand response to the retailer’s sales effort
Production cost
Initial funds of the retailer
Financing amount of the retailer
Residual value
The supplier wholesale price
Partial buyback ratio
Interest rate of trade credit financing
Profit under the decentralized system
Profit under the centralized system
Channel primary demands
Channel total demand
Density function of demand
Cumulative density function of demand