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Abstract
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.