Abstract: With the further aggravation of the social environment and market competition, the price-and-quality competition has become particularly fierce under the dual-channel supply chain model upon the online and offline, for example, mobile phone manufacturers, such as HUAWEI and Xiaomi, also supply products to D.Phone; Lenovo, Dell and other computer manufacturers supply to ONEZERO. In the context of multi-suppliers competition, the products sales and profits are not only affected by their own price and quality, but also other similar products, which has an impact on the profits of supply chain. What's more, due to the stochastic market demand, retailers need to bear the risk cost of certain requirements, which will increase retailers' ordering costs, reduce retailer's motivation to order, and make the total profit loss of the whole supply chain. The design of a reasonable demand risk compensation strategy can improve the profit of the overall supply chain under the dual-channel. Therefore, from the perspective of price-and-quality competition, the problem of dual-channel supply chain risk compensation under stochastic market demand is discussed, and the impact of demand risk compensation based on quality and price on the coordination of dual channel supply chain is further analyzed, and moreover, the impact of the degree of price-and-quality and the proportion of offline sales of suppliers on the equilibrium solution are analyzed. The risk compensation model is constructed based on quality and price in which the Nash equilibrium solution is obtained under the three situations:centralized supply chain decision making, no risk compensation and risk compensation. The results show that there is a feasible demand risk compensation mechanism to achieve the coordination of supply chain, and the demand risk compensation mechanism is more favorable for retailers. Demand risk compensation price is positively related with the wholesale price, and is negatively related with product quality level under the demand risk compensation strategy; the degree of price competition has a negative effect on the retailer's order quantity, and the effect on the total profit of the supply chain decreases with the degree of competition increasing, the degree of quality competition has a positive influence on the order quantity of retailer and supplier product quality level, inverted U type impact on the total profit of the supply chain; The demand risk compensation strategy can stimulate the retailer's ordering behavior, and strengthen the influence of the degree of price competition and quality competition on the order quantity and the total profit of the supply chain; In the supply chain system, the total profit of the supply chain is better than the total profit of the supply chain under the single channel marketing mode. The conclusion not only analyzes the influence of risk compensation strategy on the coordination of dual channel supply chain, but also clarifies the influence mechanism of price and quality competition on the behavior strategy. Different from previous researches, the innovation of this paper is reflected in the following aspects:First, considering the dual-channel supply chain model of online and offline and the existence of quality-and-price competition among suppliers, the three-side coordination among two suppliers and single retailer is analyzed. Secondly, considering the risk cost and the profit loss caused by the stochastic market demand in the supply chain, the demand risk compensation strategy based on price and quality is introduced, and the influence of demand risk compensation strategy on the coordination of dual-channel supply chain is analyzed.

Key words: risk compensation strategy, stochastic market demand, price competition, quality competition, supply chain coordination