Speaker(s):  Noel Watson (HBS)

Title:      "Behavioral Dynamics in Supply Chain Management"    

Abstract
We begin our examination of behavioral dynamics in supply chains examining demand and supply planning processes. In particular we are interested in how behavioral biases, e.g., psychological, incentive related, etc., affect both the making of forecasts and approving/modifying inventory policy decisions. Most research in these areas in the academic supply chain literature is based on assumptions that are either a) derived from experiments, (e.g. students playing the beer game), b) derived from surveys asking managers how they make the order decision, or c) made to ensure tractability in analytical models. We are interested in a more direct analysis of managers’ decision-making for these activities to gain a specifically context-based understanding of how these decisions are made as opposed to how managers "say" they are being made. A more systematic understanding of how and when these biases affect decision making along with their consequences would benefit companies as they seek to improve their inventory decision making capability.