Parameters

Descr

a

Online basic demand

b

Offline basic demand

C

Unit production cost of pharmaceutical manufacturer

w

Unit wholesale price of pharmaceutical manufacturer

$P_t$

Unit retail price of pharmaceutical retailer ( $P_t>w$ )

$P_e$

Unit direct online selling price ( $P_e>w$ )

$\theta$

Proportion of revenue sharing

$\beta$

Discount factor

$Pi\_md$

Expected profit of the pharmaceutical manufacturer under decentralized decision

$Pi\_rd$

Expected profit of the pharmaceutical retailer under decentralized decision

$Pi\_d$

Overall profit of the pharmaceutical supply chain system under decentralized decision

$Pi\_c$

Overall profit of the pharmaceutical supply chain system under cooperative decision