Dynamic Investigation in Green Supply Chain considering Channel Service

Abstract

Considering firm’s innovation input of green products and channel service, this paper, in dynamic environment, studies a dynamic price game model in a dual-channel green supply chain and focuses on the effect of parameter changing on the pricing strategies and complexity of the dynamic system. Using dynamic theory, the complex behaviors of the dynamic system are discussed; besides, the parameter adaptation method is adopted to restrain the chaos phenomenon. The conclusions are as follows: the stable scope of the green supply chain system enlarges with decision makers’ risk-aversion level increasing and decreases with service value increasing; excessive adjustment of price parameters will make the green supply chain system fall into chaos with a large entropy value; the attraction domain of initial prices shrinks with price adjustment speed increasing and enlarges with the channel service values raising. As the dynamic game model system is in a chaotic state, the profit of the manufacturer will be damaged, while the efficiency of the retailer will be improved. The system would be kept at a stable state and casts off chaos by the parameter adaptation method. Results are significant for the manager to make reasonable price decision.