Retailing supply chain with location-sensitive mobile channel: a game-theoretic investigation

Nowadays, manufacturers are increasingly adopting direct channels to increase financial performance and improve services. Location-sensitive mobile channel helps retailers attract nearby incumbent consumers. How such a channel influences supply chain performance is unknown. In this paper, we evaluate the performance of a decentralised supply chain that has three channels: an electronic channel, a mobile channel and a physical channel. We model the supply chain interaction in a Stackelberg game and derive conditions that mobile channel benefits the various supply chain participants.