Inventory decision-making biases: a review and suggestions for future research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
S. Yamini ◽  
M.S. Gajanand
Keyword(s):  
Systematic Review ◽  
Decision Making ◽  
Supply Chain ◽  
Operations Management ◽  
Future Research ◽  
Content Type ◽  
Classification Framework ◽  
Research Findings ◽  
Inventory Decisions ◽  
Inventory Decision

PurposeThe paper provides a comprehensive overview of the biases in inventory decisions, under the umbrella of behavioural operations, considering research findings that used experimental methods. Research in this field has gained traction but, to the best of our knowledge, review articles that summarize these research findings are scarce. Hence, there is a need to synthesize the anomalies and biases reported in inventory decision-making literature to gain a more integrated understanding.Design/methodology/approachThis study reviews themes relevant to inventory and behavioural operations management from the articles published in recognized top-tier journals during the period between 2000 and 2020 with an aim to build a classification framework. Further, using a systematic review procedure, the relevant research studies are divided into sub-sections and appropriate search strategies are adopted to pleat more information on inventory ordering biases.FindingsThis study presents a classification framework by highlighting the factors influencing the biases in inventory decisions and describes the effects of utility preferences on the decision-making behaviour. It highlights the inventory ordering pattern under unconventional settings and also for different supply chain settings. This systematic review helps in identifying the research gap and in giving directions for future researchers.Originality/valueThe study presents a systematic review and detailed analysis of the research in inventory decision making through a behavioural lens. The study shows a clear direction of progress over the years, and implies new directions for looking beyond placing orders and for moving towards a more integrated approach while making supply chain decisions. It will be useful for researchers and practitioners working on newsvendor decisions, supply chain contracts, behavioural economics, behavioural operations management, bounded rationality theory and experimental economics.

Inventory and ordering decisions: a systematic review on research driven through behavioral experiments

2020 ◽  
Vol 40 (7/8) ◽  
pp. 997-1039 ◽  
Author(s):  
H. Niles Perera ◽  
Behnam Fahimnia ◽  
Travis Tokar
Keyword(s):  
Systematic Review ◽  
Decision Making ◽  
Operations Management ◽  
State Of The Art ◽  
The State ◽  
Future Research ◽  
Behavioral Experiments ◽  
Content Type ◽  
Behavioral Operations ◽  
Behavioral Operations Management

PurposeThe success of a supply chain is highly reliant on effective inventory and ordering decisions. This paper systematically reviews and analyzes the literature on inventory ordering decisions conducted using behavioral experiments to inform the state-of-the-art.Design/methodology/approachThis paper presents the first systematic review of this literature. We systematically identify a body of 101 papers from an initial pool of over 12,000.FindingsExtant literature and industry observations posit that decision makers often deviate from optimal ordering behavior prescribed by the quantitative models. Such deviations are often accompanied by excessive inventory costs and/or lost sales. Understanding how humans make inventory decisions is paramount to minimize the associated consequences. To address this, the field of behavioral operations management has produced a rich body of research on inventory decision-making using behavioral experiments. Our analysis identifies primary research clusters, summarizes key learnings and highlights opportunities for future research in this critical decision-making area.Practical implicationsThe findings will have a significant impact on future research on behavioral inventory ordering decisions while informing practitioners to reach better ordering decisions.Originality/valuePrevious systematic reviews have explored behavioral operations broadly or its subdisciplines such as judgmental forecasting. This paper presents a systematic review that specifically investigates the state-of-the-art of inventory ordering decisions using behavioral experiments.

Lean resilience: AURA (Active Usage of Resilience Assets) framework for post-COVID-19 supply chain management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmitry Ivanov
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Value Creation ◽  
Operations Management ◽  
Future Research ◽  
Chain Management ◽  
Content Type ◽  
Digital Platforms ◽  
Supply Chain Resilience ◽  
Resilience Capabilities

PurposeSupply chain resilience capabilities are usually considered in light of some anticipated events and are as passive assets, which are “waiting” for use in case of an emergency. This, however, can be inefficient. Moreover, the current COVID-19 pandemic has revealed difficulties in the timely deployments of resilience assets and their utilization for value creation. We present a framework that consolidates different angles of efficient resilience and renders utilization of resilience capabilities for creation of value.Design/methodology/approachWe conceptualise the design of the AURA (Active Usage of Resilience Assets) framework for post-COVID-19 supply chain management through collating the extant literature on value creation-oriented resilience and practical examples and complementing our analysis with a discussion of practical implementations.FindingsBuilding upon and integrating the existing frameworks of VSC (Viable Supply Chain), RSC (Reconfigurable Supply Chain) and LCNSC (Low-Certainty-Need Supply Chain), we elaborate on a new idea in the AURA approach – to consider resilience as an inherent, active and value-creating component of operations management decisions, rather than as a passive “shield” to protect against rare, severe events. We identify 10 future research areas for lean resilience integrating management and digital platforms and technology.Practical implicationsThe outcomes of our study can be used by supply chain and operations managers to improve the efficiency and effectiveness by turning resilience from passive, cost-driving assets into a value-creating, inclusive decision-making paradigm.Originality/valueWe propose a novel approach to bring more dynamics to the notion of supply chain resilience. We name our approach AURA and articulate its two major advantages as follows: (1) reduction of disruption prediction efforts and (2) value creation from resilience assets. We offer a discussion on ten future research directions towards a lean resilience.

Bharat Tobacco: vendor selection and vendor rating

2013 ◽  
Vol 3 (2) ◽  
pp. 1-8
Author(s):  
Monica Singhania ◽  
Gagan Gandhi
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Operations Management ◽  
Manufacturing Industry ◽  
Marketing Research ◽  
Vendor Selection ◽  
Chain Management ◽  
Content Type ◽  
Vendor Rating

Subject area Supply chain management and particularly the significance of vendors as a strategic decision making tool. Study level/applicability The case is suitable for use in the following courses: MBA programs with specialisation in operations management where it can be used to teach students the significance of vendor selection and vendor rating in supply chain management (SCM); marketing research in management where it can be used to highlight the concept of multi attribute utility theory (MAUT) and its application; advanced statistics for multi criteria decision making (MCDM); and MBA/post graduate programs in management in strategic management where it can be used to introduce the concept of SWOT analysis and Porter's five forces model. An understanding of business process improvement will enable students get a comprehensive view about the case. Case overview This case showcases the concepts of MCDM and SCM in manufacturing industry. The company wanted to select vendors and rate them in each category of raw materials in order to have a competitive advantage over competitors. Since there are multiple attributes (often contradictory in nature) based on which the vendors would be selected Kaul, Vice-President, Commercial uses multi-attribute utility theory (MAUT) to help solve the problem. The case has implications for manufacturing industry in selecting vendors to meet a raw materials need. Expected learning outcomes The case can be used to understand management concepts such as market research, supply chain management and multi criteria decision making. It can be used to: teach complexities involved in identifying attributes for vendor selection and vendor rating; help understand supply chain management in business process improvement; help students understand the application of MCDM; and help MBA students studying marketing research. The case will also be useful to students in understanding the application of MCDM in operations management. Some knowledge about cigarette manufacturing will help students to realize the depth of the case. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Leanness and agility: a comparative theoretical view

2017 ◽  
Vol 117 (1) ◽  
pp. 149-165 ◽  
Author(s):  
Nesrine Eltawy ◽  
David Gallear
Keyword(s):  
Systematic Review ◽  
Supply Chain ◽  
Supply Chains ◽  
Conceptual Framework ◽  
Deep Understanding ◽  
Future Research ◽  
Content Type ◽  
Comparative Review ◽  
Concept Review ◽  
The Relationship

Purpose The purpose of this paper is to compare and distinguish between two salient means for improving the management of, and leveraging the effectiveness of, supply chains. Leanness and agility have been considered recently as prominent and successful means for competing. The paper examines the literature on leanness and agility thinking including their definitions, importance and practices. The paper also highlights the argument surrounding the relationship direction between these two concepts. Design/methodology/approach A systematic comparative review was conducted on the lean literature and agility literature at three levels: manufacturing, organisation and supply chain. The systematic review on the lean concept has been conducted based on articles published over the last two decades. The agility concept review was conducted based on the articles published from its inception in 1991 through early 2016. Findings A conceptual framework is presented following the in-depth review. The conceptual framework sets out the input, operational practice and output elements necessary for both philosophies to take root successfully. A discussion based on the review of the literature on the direction of the relationship between leanness and agility is also presented, and should also be included in any future empirical testing of the conceptual framework. Research limitations/implications The paper is based on a systematic review which extends previous research as it has been conducted in a detailed and clear systematic manner which enables a deep understanding of the similarities and differences between leanness and agility philosophies from an operational perspective: inputs, operational and outcomes elements. Future research is required to empirically test the conceptual relationships. Practical implications Companies are constantly searching for ways to improve their supply chains. This paper seeks to provide a deep understanding for lean and agility philosophies as important means for achieving this goal. This has been conducted by clarifying the differences, similarities and the direction of the relationship that may exist between these two approaches as means for improving a company’s supply chain. Originality/value Based on a systematic review on leanness and agility philosophies, a conceptual framework exploring the differences and similarities between both philosophies from an operational systematic perspective is presented.

Blockchain and supply chain management integration: a systematic review of the literature

2019 ◽  
Vol 25 (2) ◽  
pp. 241-254 ◽  
Author(s):  
Maciel M. Queiroz ◽  
Renato Telles ◽  
Silvia H. Bonilla
Keyword(s):  
Systematic Review ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Business Models ◽  
Electric Power Industry ◽  
Future Research ◽  
Chain Management ◽  
Content Type ◽  
Blockchain Technology ◽  
Practical Implications

Purpose This paper aims to identify, analyse and organise the literature about blockchains in supply chain management (SCM) context (blockchain–SCM integration) and proposes an agenda for future research. This study aims to shed light on what the main current blockchain applications in SCM are, what the main disruptions and challenges are in SCM because of blockchain adoption and what the future of blockchains holds in SCM. Design/methodology/approach This study followed the systematic review approach to analyse and synthesise the extant literature on blockchain–SCM integration. The review analysed 27 papers between 2008 and 2018 in peer-reviewed journals. Findings Blockchain–SCM integration is still in its infancy. Scholars and practitioners are not fully aware of the potential of blockchain technology to disrupt traditional business models. However, the electric power industry seems to have a relatively mature understanding of blockchain–SCM integration, demonstrated by the use of smart contracts. Additionally, the disintermediation provided by blockchain applications has the potential to disrupt traditional industries (e.g. health care, transportation and retail). Research limitations/implications The limitations of this study are represented mainly by the scarcity of studies on blockchain–SCM integration in leading journals and databases. Practical implications This study highlights examples of blockchain–SCM integration, emphasising the need to rethink business models to incorporate blockchain technology. Originality/value This study is the first attempt to synthesise existing publications about the blockchain–SCM integration, shedding light on the disruption caused by, and the necessity of, the SCM reconfigurations.

Vehicle routing in cold food supply chain logistics: a literature review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Awad ◽  
Malick Ndiaye ◽  
Ahmed Osman
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Vehicle Routing ◽  
Distribution Systems ◽  
Critical Parameters ◽  
Future Research ◽  
Monitoring And Control ◽  
Modeling Framework ◽  
Content Type ◽  
Cold Food

PurposeCold supply chain (CSC) distribution systems are vital in preserving the integrity and freshness of transported temperature sensitive products. CSC is also known to be energy intensive with a significant emission footprint. As a result, CSC requires strict monitoring and control management system during storage and transportation to improve safety and reduce profit losses. In this research, a systematic review of recent literature related to the distribution of food CSC products is presented and possible areas to extend research in modeling and decision-making are identified.Design/methodology/approachThe paper analyzes the content of 65 recent articles related to CSC and perishable foods. Several relevant keywords were used in the initial search, which generated a list of 214 articles. The articles were screened based on content relevance in terms of food vehicle routing modeling and quality. Selected articles were categorized and analyzed based on cost elements, modeling framework and solution approach. Finally, recommendations for future research are suggested.FindingsThe review identified several research gaps in CSC logistics literature, where more focused research is warranted. First, the review suggests that dynamic vehicle modeling and routing while considering products quality and environmental impacts is still an open area for research. Second, there is no consensus among researchers in terms of quality degradation models used to assess the freshness of transported cold food. As a result, an investigation of critical parameters and quality modeling is warranted. Third, and due to the problem complexity, there is a need for developing heuristics and metaheuristics to solve such models. Finally, there is a need for extending the single product single compartment CSC to multi-compartment multi-temperature routing modeling.Originality/valueThe article identified possible areas to extend research in CSC distribution modeling and decision-making. Modified models that reflect real applications will help practitioners, food authorities and researchers make timely and more accurate decisions that will reduce food waste and improve the freshness of transported food.

A global exploration of Big Data in the supply chain

2016 ◽  
Vol 46 (8) ◽  
pp. 710-739 ◽  
Author(s):  
Robert Glenn Richey ◽  
Tyler R. Morgan ◽  
Kristina Lindsey-Hall ◽  
Frank G. Adams
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Operations Management ◽  
Success Factors ◽  
Future Research ◽  
Chain Management ◽  
Content Type ◽  
Key Success Factors ◽  
Starting Point

Purpose Journals in business logistics, operations management, supply chain management, and business strategy have initiated ongoing calls for Big Data research and its impact on research and practice. Currently, no extant research has defined the concept fully. The purpose of this paper is to develop an industry grounded definition of Big Data by canvassing supply chain managers across six nations. The supply chain setting defines Big Data as inclusive of four dimensions: volume, velocity, variety, and veracity. The study further extracts multiple concepts that are important to the future of supply chain relationship strategy and performance. These outcomes provide a starting point and extend a call for theoretically grounded and paradigm-breaking research on managing business-to-business relationships in the age of Big Data. Design/methodology/approach A native categories qualitative method commonly employed in sociology allows each executive respondent to provide rich, specific data. This approach reduces interviewer bias while examining 27 companies across six industrialized and industrializing nations. This is the first study in supply chain management and logistics (SCMLs) to use the native category approach. Findings This study defines Big Data by developing four supporting dimensions that inform and ground future SCMLs research; details ten key success factors/issues; and discusses extensive opportunities for future research. Research limitations/implications This study provides a central grounding of the term, dimensions, and issues related to Big Data in supply chain research. Practical implications Supply chain managers are provided with a peer-specific definition and unified dimensions of Big Data. The authors detail key success factors for strategic consideration. Finally, this study notes differences in relational priorities concerning these success factors across different markets, and points to future complexity in managing supply chain and logistics relationships. Originality/value There is currently no central grounding of the term, dimensions, and issues related to Big Data in supply chain research. For the first time, the authors address subjects related to how supply chain partners employ Big Data across the supply chain, uncover Big Data’s potential to influence supply chain performance, and detail the obstacles to developing Big Data’s potential. In addition, the study introduces the native category qualitative interview approach to SCMLs researchers.

scholarly journals Pre-paradigmatic status of industrial sustainability: a systematic review

2017 ◽  
Vol 37 (10) ◽  
pp. 1425-1450 ◽  
Author(s):  
Palie Smart ◽  
Stefan Hemel ◽  
Fiona Lettice ◽  
Richard Adams ◽  
Stephen Evans
Keyword(s):  
Systematic Review ◽  
Operations Management ◽  
Research Field ◽  
The Body ◽  
Theory And Practice ◽  
Future Research ◽  
Economic Resilience ◽  
Content Type ◽  
Industrial Sustainability ◽  
Scientific Status

Purpose The purpose of this paper is to progress operations management theory and practice by organising contributions to knowledge production, in industrial sustainability, from disparate researcher communities. It addresses the principal question “What scholarly dialogues can be explicated in the emerging research field of industrial sustainability?” and sub-questions: what are the descriptive characteristics of the evidence base? and what thematic lines of scientific inquiry underpin the body of knowledge? Design/methodology/approach Using an evidenced-based approach, a systematic review (SR) of 574 articles from 62 peer-reviewed scientific journals associated with industrial sustainability is conducted. Findings This paper distinguishes three prevailing dialogues in the field of industrial sustainability, and uses Kuhn’s theory of paradigms to propose its pre-paradigmatic scientific status. The three dialogues: “productivity and innovation”, “corporate citizenship” and “economic resilience” are conjectured to privilege efficiency strategies as a mode of incremental reductionism. Industrial sustainability espouses the grand vision of a generative, restorative and net positive economy, and calls for a future research trajectory to address institutional and systemic issues regarding scaling-up and transition, through transformative strategies. Research limitations/implications The review is limited by the nature of the inquiries addressed in the literatures by specific researcher communities between 1992 and 2014. Originality/value This study performs the first SR in the field of industrial sustainability, synthesises prevailing scholarly dialogues and provides an evaluation of the scientific status of the field.

Business view of cloud

2015 ◽  
Vol 38 (6) ◽  
pp. 582-604 ◽  
Author(s):  
Sowmya Karunakaran ◽  
Venkataraghavan Krishnaswamy ◽  
Sundarraj Rangaraja P
Keyword(s):  
Systematic Review ◽  
Cloud Computing ◽  
Review Paper ◽  
Future Research ◽  
Computing Technology ◽  
Business Decisions ◽  
Content Type ◽  
Classification Framework ◽  
Future Work ◽  
Practical Implications

Purpose – This study aims to investigate the decisions related to business aspects of cloud computing and discuss the research density, models/techniques used and identify opportunities for future work. Design/methodology/approach – In this paper, 155 research articles shortlisted through a systematic review were analyzed and a classification framework was developed. Using this framework, the research density is discussed and a detailed review of four widely researched decision themes is provided. Findings – It was found that current research on business aspects is spread across 23 decision themes. The distribution, however, is skewed with 50 per cent pertaining to just four themes, namely, pricing, markets, sourcing and adoption. Simulation appears to be the preferred modeling approach. Decision themes in consumer behavior, sustainability, auditing and culture offer opportunities for future research. Research limitations/implications – The classification framework organizes extant research on applied models and allows researchers to identify potential avenues for application, improvement and development of models to support business decisions. The review is limited to academic articles and does not include industry reports. Practical implications – Practitioners can readily understand various perspectives relevant to a decision theme such as pricing or sourcing, seek and use associated models such as simulation, optimization and game theory to support their decision-making. Originality/value – Most of the extant review paper deal with cloud computing technology. This study is the first systematic review on the models applied to business aspects of cloud computing. This study provides a classification framework and explicitly lists associated decision themes, models/techniques and opportunities.

Modeling green supply chain coordination: current research and future prospects

2018 ◽  
Vol 25 (9) ◽  
pp. 3767-3788 ◽  
Author(s):  
Chetna Chauhan ◽  
Amol Singh
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Green Supply Chain ◽  
Future Research ◽  
Content Type ◽  
Coordination Strategies ◽  
Model Based ◽  
Classification Framework ◽  
Depth Analysis ◽  
Distribution Of Resources

Purpose With rising environmental concerns, recent years have witnessed a significant surge of academic and corporate interest in green supply chain coordination (GSCC). This is evident from the rise in channel coordination literature focused toward the elimination of sub-optimal in the green supply chain (GSC). This paper seeks to summarize the model-based research on coordination in GSCs with the help of a framework developed specifically for this paper. The purpose of this paper is to present an in-depth analysis of the widely used models in the area. Design/methodology/approach A review of literature is presented in this paper to examine the underlying concepts peculiar to GSCC. A classification framework is developed to present an exhaustive survey of commonly used concepts. Findings Around 90 percent of the papers on GSCC come from game theory (GT) application, which explicitly utilizes coordination through contracts. The review concludes prospective area of research in GSCC. The study posits that there exists a potential of creating a more rational and efficient coordination strategies to improve GSC’s operational performance, with the view of the optimum distribution of resources and better environmental management. Originality/value To the best of authors’ knowledge, this is the first state-of-the-art review of GSCC literature focused primarily on mathematical model-based literature. This review identifies various methodological and content-oriented characteristics of GSCC. The paper also opens avenues of future research.

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