Optimal coordination strategies model of dual channel supply chain

We consider a supply chain that consists of one (upstream) supplier and two (downstream) heterogeneous retailers. One is the retailer direct buying and selling product enter an online, the other is the retailer buying and selling product through traditional channel. From some assumptions, we establish the optimal profit model under the manufacturer control the traditional channel and network channel, and get the product sale price. Furthermore we also establish the optimal coordination strategies model under the manufacturer only control the E-channel while the retailer on traditional channel maintain cooperative relationship with the manufacturer. By mathematics calculating, we give out the solution of the model.