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I nternet companies extensively use the practice of drop-shipping, where the wholesaler stocks and owns the inventory and ships products directly to customers at retailers' request. Under the drop-shipping arrangement, the supply chain benefits from risk pooling because the inventory for multiple retailers is stocked at the same location, the wholesaler's. Another more traditional channel alternative on the Internet is one in which retailers stock and own the inventory. These two supply chaindoi:10.1287/mnsc.1060.0512 fatcat:pogmbwlopvbs3auxhk5q64gpay