Research on games theory-based procurement strategy selection for forging enterprise

Game theory is applied to assist forging enterprise in procurement strategy selection. A static games model of imperfect information between forging enterprise and materials suppliers under co-competition strategy is presented and the optimal procurement strategy of materials under influence of different belief is obtained. Also, after analyzing the gaming results, forging enterprise is proposed to remain certain level stock, to keep a good symbiosis with monopolistic suppliers and to improve the decision-makers' diathesis in order to make the gaming results in favor of forging enterprise.