Dynamic pricing strategy and coordination in a dual-channel supply chain considering service value

In this paper, we investigate two dynamic pricing strategies in a dual-channel supply chain consisting of a manufacturer, a retailer and focus on the influence of service value on the decisions and the insight of complexity. We study and analyze the evolution of the system under this long-term price forecasting mechanism. We find that the higher adjustment parameters can make the system lose its stability, then appear period doubling bifurcation or wave shape chaos. In the decentralized decision, the system stability region first becomes smaller with service value increases, then becomes larger. In the centralized decision, the system stability region becomes smaller with service value increases. In addition, we calculate the bullwhip effect of the system, and analyze the effect of the adjustment parameters on the bullwhip effect. In order to achieve channel coordination, we put forward a two-part tariff contract. In the contract, we calculate the effect of service value on the fixed fee. The results show that the fixed fee first increases as the service value increases, then decreases. (C) 2017 Elsevier Inc. All rights reserved.