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.Chiang studied the inventory policy of dual-channel supply chain [9], but the author supposed that both supplier and retailer implement one-for-one ordering policies to replenish their inventories. The paper improves the stock-out based substitution supply chain model, in view of ordering cost, retailer implements (Q, R) ordering policy to replenish inventory. And studies the product availability of dual-channel supply based on the (Q, R) policy of retailer and stock-out based substitution, and hopes to provide theoretical guidance for the decision making of relative companies.The reorder point of retailer is no-negative, that is to say 0 R , when a lot size Q arrive, the on-hand inventory level will always above the reorder point R, so in a period of lead time, the retailer only has a lot size Q, this avoid the problem of crossed contract. In addition, this assumption guarantees the ordering goods in succession, and generates random lead time [10].
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