Optimal ordering decision by increasing the intermediary of supply chain

Gatherings such as weddings, birthday parties, corporate dinners, and many others are taken place everywhere at any time all around the world. A banquet host not only has the responsibility of arranging the event date, location and setting up the layout, but also plans on how to invite the guests. How many guests will show up is very important because the number of guests will directly affect the amount of food ordered. If the ordered quantity falls short of the amount needed for the guests present, then the host shows a lack of courtesy and may lose his reputation. If the order quantity exceeds the amount needed, the host will not only encounter a loss of profit but the excess food would be wasteful. This study aims to derive an optimal order quantity by decreasing the uncertainty in demand by adding an intermediary to the supply chain. Numerical examples and sensitivity analysis are provided to describe the model.