Abstract: Market competition makes products life-cycle become shorter and shorter nowadays. With great improvement in information and network technology,Internet appears as a new special distribution channel. Hybrid distribution systems composed of both traditional retail channel and Internet-based channel raise new challenges for academic research,as well as management practice. The authors take newsvendor model to analyze stocking decisions made in hybrid distribution systems for short life-cycle products. By numerical experiments,we analyze the demand uncertainty's impact on manufacturer and retailer's optimal stocking decision. Finally,we conclude the management implication of this article.

Key words: hybrid distribution systems, short life-cycle products, stocking decision