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An Alternative Theoretical Explanation and Empirical Insights into Overordering Behavior in Supply Chains *
Author(s) -
Niranjan Tarikere T.,
Wagner Stephan M.,
Bode Christoph
Publication year - 2011
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2011.00334.x
Subject(s) - extant taxon , supply chain , empirical research , pipeline (software) , dysfunctional family , field (mathematics) , core (optical fiber) , game theory , computer science , operations research , management science , microeconomics , economics , epistemology , business , marketing , psychology , engineering , philosophy , mathematics , biology , telecommunications , evolutionary biology , pure mathematics , psychotherapist , programming language
The beer game and the supply line underweighting theory are central to our knowledge of decision making in dynamic environments such as supply chains. The core of these theories is that people are incapable of recognizing the pipeline inventory and this is the main cause of overordering and dysfunctional behavior. This article identifies lacunae in the theoretical and empirical foundations of extant literature and proposes an alternate explanation, a “correction model,” explaining why overreactions occur. We adopt a multi‐method research design, comprising a field case study and laboratory experiments, to ground our findings. [Submitted: July 19, 2010. Revisions received: December 8, 2010; March 14, 2011. Accepted: March 28, 2011.]