Capacity Allocation and Compensation in a Dual-Channel Supply Chain under Uncertain Environment

Table 1

Decision variables and parameters.

Decision variables
	Retailer’s order quantity decision in the retail selling channel
	Manufacturer’s inventory level decision in the direct selling channel
Parameters
	Manufacturer’s production capacity
	Probability density function of
	Cumulative distribution function of
	Maximum value of
	Wholesale price per unit product in the retail selling channel
,	Retail price in the retail selling channel and the direct selling channel, respectively
,	Highest willingness of customers to pay in the direct selling channel and the retail selling channel, respectively
,	Unit cost at which the manufacturer supplies the retail selling channel and the direct selling channel, respectively
	Cross sensitivity coefficient of expected sales volume between the retail selling channel and the direct selling channel