Multiperiod Inventory Management with Budget Cycles: Rational and Behavioral Decision‐Making

Liang

et al. 2022

Scientific Programming

The comprehensive reasons for the cross-regional flow of enterprises in their own economy are studied in this paper. Most traditional enterprise migration research focuses on the impact of a single factor. Even the research on the influence of multiple factors often ignores the interaction of various factors. Therefore, this paper proposes and logicalises the “push and pull” mechanism of enterprise migration to address the limitations of previous research. Through bibliometric analysis and investigation, we systematically think about the factors that affect the corporate migration mechanism and improve the Push-Pull Theory. Besides, by deploying a conceptual system dynamics model, this paper explains how various factors affect enterprise migration. In addition, we discussed how to adopt systems thinking to promote the development of emerging economies. We selected and tested 6 companies that migrated in China, and the results are in line with reality. The conclusion supports the theory that systematic thinking and decision-making influence corporate behaviour.

Section: Interior: Executive Behaviourmentioning

confidence: 99%

Redistribution of Resources: Sustainable System Mechanisms for Enterprise Migration

Liang

et al. 2022

Scientific Programming

J of Consumer Behaviour

“…Usually linked to superior operational (Moons et al, 2019) and financial performances (Becker‐Peth et al, 2020), inventory management is identified with a range of strategic business matters, for example, logistics costs (Nakandala et al, 2017), purchasing intentions (Park et al, 2020), customer service (Jones, 2020), the stability of material flows, and product availability (Demirel et al, 2019). Not surprisingly, the practice is argued offers clear payoffs (Bromiley & Rau, 2016), as it is a factor of overall corporate success (Gallmann & Belvedere, 2011) and a source of competitive advantage (Nakandala et al, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

(Mis)managing overstock in luxury: Burning inventory and brand trust to the ground

Park¹,

Nunes²,

Paiva

2021

Traditionally associated with demands for superior quality and social status, luxury consumption is expected to undergo important transformations in the coming decades. Following a series of societal changes, the environmental impacts generated by companies have become decisive factors in purchasing decisions. Authors have also been stressing the effect of sustainability performance on assorted dimensions of B2C relationships, thereby putting pressure on companies to incorporate these trends. While luxury brands have sought to adapt their business models, a series of unsustainable practices continue to be part of their day‐to‐day operations. Among the most controversial is the burning of unsold products as a way of preserving brand value. In addition to attracting unwanted attention from the media, the destruction of fully functional products often triggers harsh reactions from environmentalists, as well as from consumers who are more sensitive to these issues. The prospect of growing demands for environmental responsibility, coupled with the perception that any failure in this regard represents a risk to the reputational assets of luxury companies, makes the investigation of inventory burning in relation to stakeholders' perceptions an urgent task. Aiming to offer new insights into the future of sustainable luxury consumption, we assess the impact of this practice on two key components of consumer perception. Through two scenario‐based experiments with a total sample of 492 participants, we investigate the effects of inventory burning on consumer trust and avoidance of luxury brands. Our results indicate the need for luxury brands to further incorporate environmental demands as they seek to serve increasingly demanding eco‐conscious consumers.

“…A recent lab-based study investigated the impact of budget cycles towards multi-period inventory decisions (Becker-Peth et al , 2020). The findings show a sharp drop in order-up-to levels at the conclusion of the budget cycle indicating a myopic nature among subjects.…”

Section: Primary Research Clustersmentioning

confidence: 99%

Inventory and ordering decisions: a systematic review on research driven through behavioral experiments

Perera

Fahimnia

Tokar

2020

IJOPM

PurposeThe success of a supply chain is highly reliant on effective inventory and ordering decisions. This paper systematically reviews and analyzes the literature on inventory ordering decisions conducted using behavioral experiments to inform the state-of-the-art.Design/methodology/approachThis paper presents the first systematic review of this literature. We systematically identify a body of 101 papers from an initial pool of over 12,000.FindingsExtant literature and industry observations posit that decision makers often deviate from optimal ordering behavior prescribed by the quantitative models. Such deviations are often accompanied by excessive inventory costs and/or lost sales. Understanding how humans make inventory decisions is paramount to minimize the associated consequences. To address this, the field of behavioral operations management has produced a rich body of research on inventory decision-making using behavioral experiments. Our analysis identifies primary research clusters, summarizes key learnings and highlights opportunities for future research in this critical decision-making area.Practical implicationsThe findings will have a significant impact on future research on behavioral inventory ordering decisions while informing practitioners to reach better ordering decisions.Originality/valuePrevious systematic reviews have explored behavioral operations broadly or its subdisciplines such as judgmental forecasting. This paper presents a systematic review that specifically investigates the state-of-the-art of inventory ordering decisions using behavioral experiments.