| Notations | Explanations | Notations | Explanations |
| F(x) | Demand distribution function of traditional retail channel | p | Retail price |
| f(x) | Density function of traditional retail channel | П | Profit |
| μ | Demand mean |
| Order quantity of traditional retail channel |
| G(x) | Demand distribution function of direct online sales channel |
| Order quantity of direct online sales channel |
| g(x) | Density function of direct online sales channel | U | Consumer utility |
| b | Backorder cost | v | Consumers’ valuation for goods |
| c | Sales cost | k | Retailer inconvenience cost |
| w | Wholesale price | Φ | Loss aversion function |