ABSTRACT
With the rapid development of new retail, many dual-channel retailers try to open cross-channel return to improve market share, which also brings greater challenges to the inventory management problem. From the perspective of dual-channel retailers, this paper studies the newsvendor problem under the strategy of returning to original channel and transferring of ownership, compares the optimal order quantity and profit under different strategies. The results show that the transferring of ownership strategy is optimal. Through numerical simulation, the increase of cross-channel return rate will have a great impact on dual-channel order quantity, and not always have a negative impact on profit. In addition, the increase in resale cost will induce the online channel to order more but get lower profits, while the offline channel tends to order less and get more profits.
