A Study on the Chain Restaurants Dynamic Negotiation Games of the Optimization of Joint Procurement of Food Materials

Abstract

In the era of meager profit, production costs often become an important factor affecting SMEs’ operating conditions, and how to effectively reduce production costs has become an issue of in-depth consideration for the business owners. Especially, the food and beverage (F&B) industry cannot accurately predict the demand. It many cause demand forecast fall and excess or insufficient inventory pressure. Companies of the F&B industry may be even unable to meet immediate customer needs. They are faced great challenges in quick response and inventory pressure. This study carried out the product inventory model analysis of the most recent year’s sales data of the fresh food materials for chain restaurants in a supply chain region with raw material suppliers and demanders. Moreover, this study adopted the multi-agent dynamic strategy game to establish the joint procurement decision model negotiation algorithm for analysis and verification by simulation cases to achieve the design of dynamic negotiation optimization mechanism for the joint procurement of food materials. Coupled with supply chain management 3C theory for food material inventory management, we developed the optimization method for determining the order quantities of the chain restaurants. For product demand forecast, we applied the commonality model, production and delivery capacity model, and the model of consumption and replenishment based on market demand changes in categorization and development. Moreover, with the existence of dependencies between product demands as the demand forecast basis, we determined the appropriate inventory model accordingly.