International Journal of Management and Decision Making (5 papers in press)
- Sharing Planned Factory Shutdown Information in Supply Chain Systems: An Agent-Based Modelling Approach
by Ghada Deghedi, Yasser Ibrahim
Abstract: Reverse Information Sharing (RIS) has recently received attention as an essential complementary coordination mechanism to the typical downstream IS in Supply Chain (SC) systems. This paper comprehensively discusses the behaviour of a SC system under the condition of planned factory shutdown. The significance of sharing shutdown information for the whole SC and each of its actors is investigated under different Inventory to Backorder Cost Ratios (I/B-CRs) and various production capacities. A modified beer game that allows factory shutdown is represented as a four-stage serial SC. A deterministic market demand, with demand IS in place, is assumed. An agent based model is developed for simulating different scenarios. The results demonstrate that RIS prevents the accumulation of backorder and reduces the overall SC cost by almost 50%. The results, nevertheless, show that the significance of RIS is relative to the I/B-CR and production capacity.
Keywords: Supply Chain Management (SCM); Beer Game; Reverse Information Sharing; Agent-Based Modelling (ABM)
- Calculating the Total Value of Supplier Innovation
by Stefan Winter, Rainer Lasch, Jatinder Gupta
Abstract: Supplier innovation can contribute to a companys success, not only through cost savings, but also through revenue improvements by means of a higher chargeable price or the attraction of more customers. Although the demonstration of the measurable benefits (cost and revenue effects) from supplier innovation has been suggested in the literature, no approach to determine the total value of a supplier innovation is available. For this purpose, total cost approaches and price setting approaches were examined to design the evaluation components within our proposed total value of suppler innovation approach. We demonstrate how cost effects can be identified by total cost analysis and revenue effects by means of a conjoint analysis and a choice simulator. The developed approach and its description serve as a practical procedure to assess the monetary profitability of supplier innovation and support managers in their decision making efforts. A case example about a smartphone manufacturer demonstrates the applicability of our proposed total value of suppler innovation approach.
Keywords: supplier innovation; evaluation; assessment; total cost analysis; conjoint analysis; decision making
- The Influence of Anticipatory Emotions, Risk Perceptions, and Managerial Experience on Escalation of Commitment Decisions
by Brandon Soltwisch
Abstract: Escalation of commitment refers to the tendency of decision makers to continue with failing courses of action (Staw, 1981). Research has identified numerous factors that contribute to escalation, however, there have been relatively few studies exploring ways to reduce this costly mistake. This study investigates the role of anticipatory emotions, risk perceptions, and managerial experience in reducing ones tendency to escalate commitments. Results suggest that anticipatory emotions and managerial experience play a significant role in reducing this decision making error. The findings of this study reveal several important practical and theoretical contributions to the field.
Keywords: escalation of commitment; decision making; anticipatory emotions; risk perceptions; managerial experience; strategic decisions; decision making bias; emotions
- Towards A Better Understanding of Strategic Planning In Service Versus Manufacturing Firms
by Trevor Smith, William Lawrence
Abstract: The extant literature is void of a scientific and robust explanation on differences between strategic planning effectiveness in service and manufacturing firms. And while there is overwhelming evidence to underscore the importance of strategic planning to organizational performance in service firms; there is little or no understanding of the impact of strategic planning in manufacturing; and what aspects of planning will be more impactful on performance outcomes in service contrasted with manufacturing firms. This study has addressed this gap; and presented a mathematical model that seeks to determine differences between strategic planning effectiveness in service and manufacturing firms. In addition, both composite and decomposed views of strategic planning, modelled through linear regressions, were used to assess the impact of strategic planning on organizational performance. The findings from the composite models are that there are no meaningful differences in strategic planning effectiveness in service and manufacturing firms; and that strategic planning was equally important in predicting performance outcomes in both service and manufacturing. However, analysis of decomposed view revealed that good assessment of internal and external environments, setting clearly defined goals and identifying and framing strategic issues were significant drivers of organizational performance in service firms; while in manufacturing, identifying and framing strategic issues were the major contributors to bottom-line. Implications for management, limitations and opportunities for further research are also discussed.
Keywords: Strategic Planning; Performance; Manufacturing; Services
Special Issue on: "Applications of AHP/ANP in Government Policy and Decision Making,"
- Government Policy and Health Care management: proposal of a shared decision-making model
by Antonella Petrillo, Fabio De Felice, Carmela Vanzanella, Filippo Crispino, Jennifer Martin, Stephen Morgan, Michael Craven, Leandro Pecchia
Abstract: As a consequence of the current economic crisis many changes have been introduced to health systems on national levels to reduce expenditure and to introduce more cost-effective methods. Then recent developments in medical technology have led to a shift in the traditional framework of physician-patient responsibility in health care decision making. In this context, the health community urges, in any case, decision makers to ensure that all changes introduced are in accordance with Health System Values. This paper presents a new decision making platform, as a tool to facilitate shared decision making, to improve the quality and transparency of tactical and strategic decisions. This new application, based on analytic quantitative method, is a component of a wider distribute web system under development, which aims to inform the new effective health technologies supporting designers in the user need elicitation and early stage health technology assessments. A case study aiming to elicit the user needs affecting the decision of whether to adopt a new magnetic resonance imaging (MRI) is also presented.
Keywords: Analytic Hierarchy Process, government policy, magnetic resonance imaging, user need elicitation, decision making