When the products are sold over a single selling season, the supply chain usually should decide inventory quantity under demand uncertainty. This paper discusses an inventory decision model of a two-echelon supply chain consisting of one supplier and two retailers under demand uncertainty. The retailers are in charge of managing inventory, and they should decide optimal inventory quantity before the selling season. First the paper gains the supply chain members' optimal decisions when the retailers decide inventory quantity respectively. Then, an integrated management mode, under which an integrated retailer takes charge of inventory of two retailers, is put forward, and the integrated retailer can transship inventory between the two retailers at the beginning of the selling season to improve the total expected profit of two retailers. And the impacts on the performance of the supply chain brought by transshipment tactics are discussed. The paper also discusses how the optimal solution will change if unit transshipment cost changes. All our findings are illustrated by a numerical example. At last further studies and issues relating to this problem have also been indicated.
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