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The 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.

This 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.

Extant 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.

The findings will have a significant impact on future research on behavioral inventory ordering decisions while informing practitioners to reach better ordering decisions.

Previous 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.

In Australia the agricultural industry is experiencing major trading difficulties. The project reported here was undertaken to investigate means of streamlining the operation of a major national supplier of farm input products with the objective of decentralised selling with centralised cost‐effective support services and nationally centralised order processing. The preliminary logistics audit is described including supply chain analysis, inventory management, order processing and freight/distribution. Analysis of this led to detailed recommendations. The many recommendations were implemented by the company during the year of the project′s lifetime – a signal success!

Key components of the logistics mix are described in an effort to create an understanding of the total logistics concept. Chapters include an introduction to logistics; the strategic role of logistics, customer service levels, channel relationships, facilities location, transport, inventory management, materials handling, interface with production, purchasing and materials management, estimating demand, order processing, systems performance, leadership and team building, business resource management.

Wellbeing evaluation using ordered categorical response data is hazardous given the scale dependent nature of most measures of wellbeing and inequality. Here, scale independent instruments for measuring levels of wellbeing and inequalities between groups in multidimensional ordered categorical environments are introduced and applied in a study of health and consumption wellbeing and the aging process in twenty‐first century China. Urban/rural location, gender, age and the availability of welfare support were considered circumstances in what is in essence a study of equality of opportunity in the acquisition of health and consumption wellbeing in Chinas’ aging population. Older populations are found to experience diminished and increasingly diverse wellbeing outcomes that are, to some extent, ameliorated by welfare support.

This paper deals with poverty decompositions into subgroups defined with respect to intervals of income and the robustness of comparisons of the absolute contribution of such groups to poverty. For instance, world poverty estimates by the World Bank often distinguish between the extreme poor whose incomes are lower than $1.25 a day (in PPP terms) and the other poor with incomes between $1.25 and $2.5 a day. Existing dominance conditions can tell whether overall poverty and extreme poverty have declined in a robust manner when comparing countries at two points of time, but they cannot say anything for the contribution of the non-extreme poor to overall poverty. In the present paper we propose stochastic generalized dominance criteria to perform robust poverty ordering when the focus is placed on some interval of the poverty domain. Using generated data based on grouped data from World Bank’s PovcalNet tool, the paper finally investigates whether the robust decline of extreme poverty around the world during the last decades was also accompanied by a decline of the contribution of non-extreme poverty.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

Heterogeneity in choice models is typically assumed to have a normal distribution in both Bayesian and classical setups. In this paper, we propose a semiparametric Bayesian framework for the analysis of random coefficients discrete choice models that can be applied to both individual as well as aggregate data. Heterogeneity is modeled using a Dirichlet process, which varies with consumers’ characteristics through covariates. We develop a Markov Chain Monte Carlo algorithm for fitting such model, and illustrate the methodology using two different datasets: a household-level panel dataset of peanut butter purchases, and supermarket chain-level data for 31 ready-to-eat breakfast cereal brands.

This study identifies and ranks the appropriate critical success decision criteria (CSDC) for the bulk order distribution (sharing) amongst multiple manufacturers (suppliers) working as an extended enterprise (EE).

The study deploys a qualitative approach to generate the appropriate decision criteria. The balanced scorecard and Pareto's chart (using Minitab^® version 18) were used for gathering and analysing the pertinent criteria.

The process of evaluating and selecting the right manufacturers is essential. Manufacturer (supplier) selection is no longer decided solely based on cost/price criterion; currently, the quality and delivery criteria prevail. Additional incorporated criteria include price/cost, technical capability, production facilities and capacity, customer satisfaction and impression, geographical location, management and organisation, financial position, environmental concern, performance history, repair service, information technology and communication systems, procedural compliance, labour relation record, reputation, flexibility or diversification, attitude, operating controls, business desire, packaging ability, past business records, trust and loyalty, training aids, complaint handling service, warranties and claim policies, reciprocal arrangements, research and development and innovation, modern slavery concern, sustainable capability, collaborative/partnership and responsiveness. The study proposed a conceptual framework of an EE alongside how manufacturers working as a single virtual entity can consider the supply chain operations reference (SCOR^®) model.

The identified CSDC are suitable for order allocation to domestic manufacturers. The deployed approaches could be extended to the mixed and quantitative approaches for increasing the generalisability.

The study establishes the pertinent CSDC that are important to execute equitable order distribution to manufacturers in an EE framework.

Many companies are finding that achievement of the desired growth rate in corporate profitability is becoming increasingly difficult. Consequently, management must search for ways to improve the efficiency of existing operations. One area of significant potential which is often overlooked in the search for improvement is the small order problem. Small orders may represent a large percentage of the total orders processed but usually represent a relatively small percentage of sales volume and, therefore, become an obstacle to channel efficiency and a drain on corporate profitability. Evaluation of the extent of this problem and the establishment of an acceptable minimum‐order quantity can result in a significant improvement in profitability for the corporation and its partners in the channel of distribution.

Logistics is the part of the supply chain (SC) that plans, executes and handles forward and reverse movement and storage of products, services and related information, in order to respond to customers' needs effectively and efficiently. The main concern for logistics is to ensure that the correct product is placed at the right time. This paper introduces a linear model of shipping focused on decision-making, which includes configuration of shipping network, choosing of transport means and transfer of individual customer shipments through a particular transport system.

In this study, authors try to address the problem of supply chain network (SCN) where the primary goal is to determine the appropriate order allocation of products from different sources to different destinations. They also seek to minimize total transportation cost and inventory cost by simultaneously determining optimal locations, flows and shipment composition. The formulated problem of getting optimal allocation turns out to be a problem of multi-objective programming, and it is solved by using the max-addition fuzzy goal programming approach, for obtaining optimal order allocation of products. Furthermore, the problem demand and supply parameters have been considered random in nature, and the maximum likelihood estimation approach has been used to assess the unknown probabilistic distribution parameters with a specified probability level (SPL).

A case study has also been applied for examining the effectiveness and applicability of the developed multi-objective model and the proposed solution methods. Results of this study are very relevant for the manufacturing sector in particular, for those facing logistics issues in SCN. It enables researchers and managers to cope with various types of uncertainty and logistics risks associated with SCN.

The principal contribution of the proposed model is the improved modelling of transportation and inventory, which are affected by different characteristics of SCN. To demonstrate computational information of the suggested methods and proposed model, a case illustration of SCN is provided. Also, environmentalism is increasingly becoming a significant global concern. Hence, the concept proposed could be extended to include environmental aspects as an objective function or constraint.

Efficient integration of logistical cost components, such as transportation costs, inventory costs, with mathematical programming models is an important open issue in logistics optimization. This study expands conventional facility location models to incorporate a range of logistic system elements such as transportation cost and different types of inventory cost, in a multi-product, multi-site network. The research is original and is focused on case studies of real life.