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The paper focus on the supply chain model with a single product in electronic and retail channel, only a supplier and a retailer in system, customers have alternatives to choose the channel that is better suited to their needs, some of them may alternatively switch to the other channel when a stock-out occurs in their preferred channel. Supplier and retailer implement one-for-one and (Q, R) ordering policies respectively to replenish their inventories. We set up the profit model of supply chain by Markov process, and study the product availability of supply chain. The result shows that the stock-out based substitution rate may increase or decrease the efficiency of decentralized supply chain; the centralized supply chain can adjust the based-stock levels timely to different stock-out based substitution rate and benefit from it, the supplier and retailer in a decentralized supply chain are more inattentive to customers’ stock-out based substitution rate, and prone to lose their benefits.

The Study of Product Availability in a Dual-channel Distribution Supply Chain with (Q, R) Policy of Retailer