Problem definition: In this e-commerce age, majority manufacturers sell products through online channels in addition to retail channels. This leads to dual channel competition and channel conflict. One popular operation in practice to reduce channel conflict is through increasing channel...

We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a...