Management and Economics
| Open Access | Strategic Optimization of Dual-Channel Inventory Replenishment and Pricing Architectures: A Multi-Dimensional Analysis of Consumer Behavior and Supply Chain Resilience
Arjun Mahrotra , Department of Operations Management and Supply Chain Strategy, National University of Singapore, SingaporeAbstract
This research investigates the complex interplay between pricing strategies, inventory replenishment policies, and multi-channel distribution frameworks within the contemporary global retail landscape. As consumer preferences shift toward integrated shopping experiences, firms must navigate the tension between traditional wholesale models and direct-to-consumer (DTC) channels. By synthesizing foundational theories of dual-channel supply chain design with emerging empirical evidence on "operating tail risk," this article develops a comprehensive theoretical framework for optimizing replenishment under stochastic demand. The study evaluates the impact of transaction costs, service quality assessments, and geographic variables on channel choice, while specifically addressing the role of returns management and green product screening. Findings suggest that while direct marketing provides high-margin opportunities, a strategic "wholesale re-expansion" is often necessary to mitigate the systemic risks associated with pure-play digital models. The paper concludes with an analysis of how adjustable robust optimization and hierarchical pricing decisions can be leveraged to maintain competitive advantage in an increasingly volatile market environment.
Keywords
Dual-channel supply chains, Inventory replenishment, Stochastic demand, Operating tail risk
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