A systems model for food purchasing

Abstract

The approach taken in this paper of isolating seasonal characteristics of products and then using that information to determine when those products should be ordered to minimize the system's purchasing costs appears to be valid. A drawback to using this approach, however, is acquiring appropriate data. The authors used data which they believed to be appropriate for thier market purchasing environment but which are not necessarily valid for other locations and/or environments. The prospective user of this model must find and obtain data suitable for the environment and isolate those products which appear seasonal. Only a small percentage of the items used possess any seasonal properties. There is also the obvious problem of using past data to determine future outcomes. Past price patterns do not necessarily continue into the future, although they should be at least indications, barring unusual farm and/or market situations. As with all decision modeling approaches, however, this model should be followed with caution. While the approach is valid, the procedure is no substitute for knowledgeable management of food service functions. Results from the model should provide additional input to guide food purchasing decisions but should not be used unequivocably. When property used, however, this procedure will allow food buyers to come closer to the goal of optimally purchasing food products from a systems point of view then is currently possible.