Vertically integrated channel

Superscripts I, T and D will denote vertically integrated, vertically disintegrated (traditional), and drop-shipping supply chains, correspondingly. Further, we will consider three drop-shipping models. In Model DW the wholesaler has channel power, in Model DR the retailer has channel power, and in Model DN the players have equal power. We also assume the following quite general form of the demand distribution ... 

Supply chains that burst to many tier 1 customers/suppliers will strain corporate resources and limit the number of process links the focal company can integrate and closely manage beyond tier 1. In general, managers in companies with immediately wide vertical structures actively manage only a few tier 2 customers or suppliers. Some companies have transferred servicing small customers to distributors, thus moving the small customers farther down in the supply chain from the focal company. This principle, known as functional spin-off, is described in the channels literature (Stem et al. 1996) and can be applied to the focal company s network of suppliers as well as to its customers. 

In most open-channel (river or estuary) situations, the depth is much less than the width, and it may appear reasonable to assume that the tracer material is mixed fully throughout the vertical structure of the water body. This assumption can be utilized to integrate Eq. (10) over the depth h of the water body, thereby reducing the equation to a two-dimensional equation. Values for all the parameters will then be depth-averaged values. Integration with depth will also eliminate the vertical diffusion term eg- As shown by Holley et al. (42), Eq. (10) can be integrated vertically to yield... 

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