Review Article

Collaborative Operation Model with Selling Profit Sharing Strategy for Direct Online Retailing

Table 1

Summary of basic notation.

Parameters

The basic demand
Unit retail price in single-channel
Unit retail price in dual-channel
Unit online price in dual-channel
Unit selling cost in online channel
The selling investment efficiency in autonomous operation
The selling investment efficiency in collaborative operation
The selling profit sharing ratio of the brand owner
The brand owner’s offline wholesale price in dual-channel

Decision variables
The investment level
The retailer’s order quantity in single-channel
The retailer’s order quantity in dual-channel
The online order quantity in dual-channel