Abstract: In the case of symmetric information framework, a dual-channel supply chain model is constructed, in which the manufacturer is diseconomies of scale and the retailer is capital constrained. By using the Stackelberg game theory, the deferred-payment model and the loan-payment model are considered to dispose the retailer′s capital insufficient problem. The model analysis shows that the optimal product pricing of each supplier in the dual channel supply chain is directly proportional to the diseconomies coefficient of the manufacturer′s production scale, and demand and profit are inversely proportional to diseconomies coefficient of manufacturer′s scale; in the case of the existence of a diseconomies of manufacturer′s scale, when the retailer is capital constraint, the manufacturer′s deferred payment contract can effectively solve retailer′s insufficient funds problem and realize the benefits when the supply chain is not capital constraint; the retailer would never choose loan payment model when the diseconomies of scale elasticity coefficient is low; the numerical simulation shows that the retailer will prefer loan payment model when the manufacturer is less sensitive to the length of deferred payment,otherwise, the retailer always prefers deferred payment model.

Key words: dual channel, diseconomies of scale, capital constraint, deferred payment, loan payment