Note on “Coordinating the ordering and advertising policies for a single-period commodity in a two-level supply chain”

In a recent paper, Chen (2011) studied a two-level supply chain consisting of one manufacturer and one retailer. In this supply chain, demand is random and depends on the advertisements of both the manufacturer and the retailer. There are some serious flaws in the assumptions of the model, and consequently some of the results derived are incorrect. In this note, we point out the flaws and correct them. The corrected model is illustrated with the help of numerical examples.