Reactions to Demand Magnitude and Variability in Order Decisions: Behavioural Implications

Mustafa Sinan Gonul, Ayse Kocabiyikoglu, Celile Itir Gogus, Dilek Onkal

Research output: Contribution to conferencePaper

Abstract

In recent years, considerable research attention has been drawn to the behavioural newsvendor problem, which constitutes one of the fundamental problems of inventory management with significant practical consequences. One of the persistent findings in this literature is the pull-to-centre effect, which can be summarized as the tendency of the decision makers to set their order decisions between the mean demand and the normative order quantity. In the current study, we attempt to explore how decision makers will react to demand uncertainty, particularly to changes in demand magnitude and demand variability and investigate the corresponding pull-to-centre effect. We also try to identify the possible cognitive biases, such as overconfidence, that may prevail in this decision process. Findings are discussed and guidance for future research will be given.
Original languageEnglish
Pages90 - 90
Number of pages1
Publication statusPublished - 11 Sep 2018
EventOperational Research Society Annual Conference - Lancaster University, Lancaster, United Kingdom
Duration: 11 Sep 201813 Sep 2018
http://www.theorsociety.com/Pages/Conferences/OR60/OR60.aspx

Conference

ConferenceOperational Research Society Annual Conference
Abbreviated titleOR60
CountryUnited Kingdom
CityLancaster
Period11/09/1813/09/18
Internet address

Fingerprint

Dive into the research topics of 'Reactions to Demand Magnitude and Variability in Order Decisions: Behavioural Implications'. Together they form a unique fingerprint.

Cite this