Abstract: This paper uses Stackelberg game model to analyze the supply chain selection and decision-making of manufacturers under the condition of heterogeneity products dual-channels, and the differences of demand, pricing and revenue are discussed respectively in three cases that they are sold in traditional channels, in traditional and electronic channels at the same time and in traditional and electronic channels individually. The study shows that the introduction of e-channels leads to a decline in retailers′ final profits, and the case that two heterogeneous products are sold in traditional and electronic channels individually will lead to a reduction in overall supply chain profits, which cannot effectively resolve channel conflicts; the profit of the manufacturer is directly proportional to the number of new product consumers and are inversely proportional to the product variance coefficient; in addition to continuing to increase consumers′ acceptance of electronic channels, manufacturers should target appropriate development areas based on the speed of product updates.

Key words: dual-channel, supply chain, heterogeneous goods, Stackelberg game, simulation