With the changes in the development of the tea industry in Taiwan, the tea industry's business structure adjustment and balancing of production and sales should be mutually concerned. This study identified the factors affecting the supply and demand chains of granulated tea, and further established the operational model of the overall system of the granulated tea industry supply and demand for simulation. System dynamic was used as the research method. Besides, response surface methodology was also employed for business strategies analysis in this study. This study found that when the full payment is at a high level, under the profit concern, it will lead to changes in the quantity of imports. However, the production rate in Taiwan is at the high level, the competitiveness of the production and marketing of the tea industry can thus be enhanced.