Journal article
Decision Making and Cognition in Multi-Echelon Supply Chains: An Experimental Study
Production and operations management, Vol.24(8), pp.1216-1234
08/2015
DOI: 10.1111/poms.12343
Abstract
Supply chain performance often depends on the individual decisions of channel members. Even when individuals have access to relevant information, order variation tends to increase when moving up the supply chain, a phenomenon known as the bullwhip effect. While prior research has investigated several structural/environmental factors which can mitigate the bullwhip effect, the underlying behavioral factors contributing to it are an open question. Using a production and distribution decision-making simulation representing a four-stage serial supply chain, we find that the cognitive profile of decision makers contributes to the bullwhip effect. We found that the specific decision tendency to underweight the supply line is linked to an individual's level of cognitive reflection. Furthermore, performance differs for entire supply chains and for specific echelons, and holds under standard mitigation efforts. The findings have implications for supply chain design, education, and industry.
Details
- Title: Subtitle
- Decision Making and Cognition in Multi-Echelon Supply Chains: An Experimental Study
- Creators
- Arunachalam Narayanan - University of HoustonBrent B. Moritz - Pennsylvania State University
- Resource Type
- Journal article
- Publication Details
- Production and operations management, Vol.24(8), pp.1216-1234
- DOI
- 10.1111/poms.12343
- ISSN
- 1059-1478
- eISSN
- 1937-5956
- Publisher
- Sage
- Number of pages
- 19
- Grant note
- Smeal College of Business Department of DISC SCIS Department C.T. Bauer College of Business
- Language
- English
- Date published
- 08/2015
- Academic Unit
- Business Analytics
- Record Identifier
- 9985219848802771
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