TY - GEN
T1 - A theoretical framework of risk compensation in supply chain management decision making
AU - Neyens, David M.
AU - Boyle, Linda Ng
PY - 2006
Y1 - 2006
N2 - The goal of this study is to develop a theoretical framework for the study of decision makers within supply chains. Decision makers may compensate inappropriately by overstocking or overestimating lead times resulting in greater inventory costs. By leveraging the knowledge associated with risk compensation, better accountability of logistics and inventory holding costs can be achieved. Although there are conflicting views on risk compensation, the theory does provide insights into the complexities facing the decision maker in supply chain environments. More specifically, there has been relatively little research examining how human factors issues impact the supply chains' effectiveness. The risk compensation framework is tailored to represent and model the inventory management portion of the supply chain and can be validated through experimentation by evaluating the operator's perceived risks. In developing this model, the foundations for extending our knowledge of the human decision making in supply chain management can be established.
AB - The goal of this study is to develop a theoretical framework for the study of decision makers within supply chains. Decision makers may compensate inappropriately by overstocking or overestimating lead times resulting in greater inventory costs. By leveraging the knowledge associated with risk compensation, better accountability of logistics and inventory holding costs can be achieved. Although there are conflicting views on risk compensation, the theory does provide insights into the complexities facing the decision maker in supply chain environments. More specifically, there has been relatively little research examining how human factors issues impact the supply chains' effectiveness. The risk compensation framework is tailored to represent and model the inventory management portion of the supply chain and can be validated through experimentation by evaluating the operator's perceived risks. In developing this model, the foundations for extending our knowledge of the human decision making in supply chain management can be established.
UR - http://www.scopus.com/inward/record.url?scp=44349123199&partnerID=8YFLogxK
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U2 - 10.1177/154193120605001506
DO - 10.1177/154193120605001506
M3 - Conference contribution
AN - SCOPUS:44349123199
SN - 9780945289296
T3 - Proceedings of the Human Factors and Ergonomics Society
SP - 1488
EP - 1491
BT - Proceedings of the Human Factors and Ergonomics Society 50th Annual Meeting, HFES 2006
PB - Human Factors and Ergonomics Society Inc.
T2 - 50th Annual Meeting of the Human Factors and Ergonomics Society, HFES 2006
Y2 - 16 October 2006 through 20 October 2006
ER -