Research on Procurement Quantity and Inventory of Fresh Retailers Based on Nonlinear Game Model

In recent years, the fresh retail industry has achieved a rapid development. For fresh retailers, a reasonable level of procurement and inventory has an important influence for reducing costs and increasing profits. The Cournot model and the Stackelberg model are two classic game models, which can find the equilibrium quantity and equilibrium profit of duopoly organizations respectively in static and dynamic games. The demand functions in many previous models are linear, and such cases are sometimes different from the reality. For fresh retail, the cost of decay is inevitable at present and must be considered. Based on these two classic game models and real data, this paper analyzes and discusses the equilibrium procurement quantity and inventory as well as equilibrium profits of fresh retailers under the static and dynamic games of complete information with nonlinear demand functions.