parameters

$\lambda$

Unit transshipment price

w

Wholesale price

p

Retail price per unit of the product

s

Unit salvage value or salvage price

v

The product value

k

Initial capital of retailer i

$\varphi$

The possibility of obtaining product at lower price

N

Number of Switcher from retailer i

x

Update random demand of retailer i

$\theta$

Low demand risk of retailer i which retailer j needs to take

$f\left(x\right)$

The probability density function of update random demand x

$F\left(x\right)$

The cumulative distribution function of update random demand x

y

Update random demand of retailer j

$g\left(y\right)$

The probability density function of random demand y

$G\left(y\right)$

The cumulative distribution function of random demand y

$\Pi$

The retailer’s expected profit

M

The expected cash on hand of retailer i before pay transshipment cost at the end of sales season

U

Customers utility

Decision variables

T

Transshipment amount