Efficient replenishment (ER), a business process that involves the reduction of order cost to
facilitate deliveries of goods from the manufacturer to the retailer, is becoming increasingly
important in distribution channel management. While a well-executed ER program is
expected to lower total channel costs and increase channel profit, very little is known about
how this incremental channel profit is distributed between the manufacturer and the retailer
and how it varies across the two common channel relationship structures, retailer price …