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2013 | OriginalPaper | Chapter

How to Improve Supply Chain Performance by Anticipating Human Decision Behavior

Author : Michael Becker-Peth

Published in: Supply Management Research

Publisher: Springer Fachmedien Wiesbaden

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Abstract

The main assumption underlying most supply chain models is the assumption of a fully rational expected profit maximizing decision maker. This might be correct assuming computerized decisions. But in reality most decisions are made by human decision makers and humans’ decisions are not always rational. This paper discusses recent behavioral operations literature describing different decision biases observed in laboratory experiments. Then, we analyze how human decision makers behave under three different supply contracts. Based on these observations we show how to take human behavior into account to improve supply chain performance.

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previous chapter Innovation in sustainable supply chains – Interaction for resources from an SME perspective

next chapter Quantitative models for value-based supply chain management

This paper is based on the doctoral thesis published as Becker-Peth (2012).

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Title: How to Improve Supply Chain Performance by Anticipating Human Decision Behavior
Author: Michael Becker-Peth
Publisher: Springer Fachmedien Wiesbaden
Book: Supply Management Research
Print ISBN: 978-3-658-03060-5

Electronic ISBN: 978-3-658-03061-2

Copyright Year: 2013
DOI: https://doi.org/10.1007/978-3-658-03061-2_6