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

• 成果类型: Article
• 署名作者: Becker-Peth, Michael; Hoberg, Kai; Protopappa-Sieke, Margarita
• 署名单位: Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Kuhne Logistics University; University of Cologne
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13123
• 发表日期: 2020
• 页码: 643-663
• 关键词: Inventory Management; multiperiod; budget cycle; behavioral operations; LAB EXPERIMENTS

摘要

We examine inventory decisions in a multiperiod newsvendor model. In particular, we analyze the impact of budget cycles in a behavioral setting. We derive optimal rational decisions and characterize the behavioral decision-making process using a short-sightedness factor. We test the aforementioned effect in a laboratory environment. We find that subjects reduce order-up-to levels significantly at the end of the current budget cycle, which results in a cyclic pattern during the budget cycle. This indicates that the subjects are short-sighted with respect to future budget cycles. To control for inventory that is carried over from one period to the next, we introduce a starting-inventory factor and find that order-up-to levels increase in the starting inventory.