Managerial Decision Making and Lead Times: The Impact of Cognitive Illusions

Treville, Suzanne de; Hoffrage, Ulrich; Petty, Jeffrey S.

doi:10.1007/978-1-84882-748-6_1

Cited by 3 publications

(3 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They note that “although the Chinese facility enjoyed lower costs, ocean transportation made its order lead times 5 to 10 times as long as those from Mexico” (p. 110). There also are considerations with respect to valuing lead time (e.g., Biçer et al., 2018; de Treville, Bicer, et al., 2014; de Treville, Schürhoff, et al., 2014), improving lead time performance (e.g., de Treville et al., 2009), or improving reliability by methods such as dual sourcing (e.g., Boute & Van Mieghem, 2015; Gurnani et al., 2014).…”

Section: Introductionmentioning

confidence: 99%

For the future and from afar: Psychological distance and inventory decision‐making

Kirshner

Moritz

2023

Production and Operations Management

View full text Add to dashboard Cite

Determining inventory ahead of knowing customer demand is a crucial decision for many businesses. Although it is possible to select the ideal order quantity given the costs of over and undersupplying demand, prior research demonstrates that decisionmakers consistently make suboptimal inventory choices. Drawing on construal level theory and psychological distance, this paper explores how differences in the spatial distance (suppliers that are geographically near or far) and temporal distance (short or long lead time from order to receipt) impact newsvendor decision-making. Across four experiments (N = 663), we find that a far psychological distance increases order quantities, which improves performance for high-margin products but results in added costs for low-margin goods. Given that spatial and temporal distances occur naturally in supply chains, our research shows that psychological distance is a cognitive explanation for biased inventory ordering and can be applied to improve decision-making.

show abstract

Section: Introductionmentioning

confidence: 99%

For the future and from afar: Psychological distance and inventory decision‐making

Kirshner

Moritz

2023

Production and Operations Management

View full text Add to dashboard Cite

show abstract

“…Many operational, analytical models assume that people are tempted to behave rationally without cognitive influence, whereas economics, finance and marketing researchers incorporate people's influence into their models, unlike operations (Gino and Pisano, 2008). This literature review substantiated De Treville et al (2009), McNamara (2014 and Gino and Pisano's (2008) claim of comparatively IJLSS 14,7 fewer studies on cognitive biases influence Lean practices and implementation and established that a gap exists in understanding the interaction of biases in an operation process, its influence on Lean implementation and practices.…”

Section: Cognitive Biases That Influence Lean Implementationmentioning

confidence: 84%

“…Psychological researchers have recorded the cognitive biases that ascribe success or challenge to the practice of operation management tools, for example: status quo bias and people's resistance to change (Gong et al, 2020); status quo bias in information system implementation (Kim and Kankanhalli, 2009); planning fallacy and lead time performance improvement (De Treville et al, 2009); cognitive biases influence IT system execution (Iris and Cebeci, 2014);…”

Section: Literature Reviewmentioning

confidence: 99%

Cognitive biases that influence Lean implementation and practices in a multicultural environment

Babu

Seadon

Moore³

2023

IJLSS

View full text Add to dashboard Cite

Purpose The purpose of this paper is to highlight the prominent cognitive biases that influence Lean practices in organisations that have a multi-cultural work environment which will aid the organisational managers and academics in enhancing the understanding of the human thought process and mitigate them suitably. Design/methodology/approach A multiple case study was conducted in organisations that were previously committed to Lean practices and had a multi-cultural work environment. This research was conducted on five companies based on 99 in-depth semi-structured interviews and seven process observations that sought to establish the system-wide cognitive biases present in a multi-cultural Lean environment. Findings The novel findings indicate that nine new biases influence Lean implementation and practices in a multi-cultural environment. This study also found strong connectivity between Lean practices and 45 previously identified biases that could affect positively or negatively the lean methodologies and their implementation. Biases were resilient enough that their influence on Lean in multi-cultural workplaces, even with transient populations, did not demonstrate cultural differentiation. Research limitations/implications Like any qualitative research, constructivism and narrative analyses are subjected to understanding based on knowledge gained on the subject, and data may have been interpreted differently. Constructivist co-recreation of process scenarios based result limitations is therefore acknowledged. The interactive participation in exploring the knowledge sought after and interaction that could have a probable influence on the participant need to be acknowledged. However, the research design, multiple methods of data collection, generalisation based on data collection and analysis methods limit the effects of these and findings are reliable to a greater extent. Practical implications The results can provide an enhanced understanding of biases and insights into a new managerial approach to take remedial steps on biases’ influence on Lean practices that can result in improved productivity and well-being from a business process perspective. Understanding and mitigating the prominent biases can aid Lean manufacturing processes and support decision makers and line managers in improving lean methodologies’ effectiveness and productivity. The biases can be negated and used to implement decisions with ease. The influence of biases and the model could be used as a basis to counter implementation barriers. Originality/value To the best of the authors’ knowledge, this is the first study that connects the cognitive perspectives of Lean business processes in a multi-cultural environment to identify the cognitive biases that influence Lean practices in organisations that were previously committed to Lean practices. The novel findings indicate that nine new biases and 45 previously identified biases influence Lean implementation and practices in a multi-cultural environment. The second novelty of this study shows the connection between cognitive biases, Lean implementation and practices in multi-cultural business processes.

show abstract

Understanding the meaning of human perception and cognitive biases for production planning and control

Bendul

2019

IFAC-PapersOnLine

View full text Add to dashboard Cite

Managerial Decision Making and Lead Times: The Impact of Cognitive Illusions

Cited by 3 publications

References 14 publications

For the future and from afar: Psychological distance and inventory decision‐making

For the future and from afar: Psychological distance and inventory decision‐making

Cognitive biases that influence Lean implementation and practices in a multicultural environment

Understanding the meaning of human perception and cognitive biases for production planning and control

Contact Info

Product

Resources

About