Purpose: 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.Design/methodology/approach: 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.Findings: 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.Practical implications: The findings will have a significant impact on future research on behavioral inventory ordering decisions while informing practitioners to reach better ordering decisions.Originality/value: 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.
Low-income countries are persistently suffering from last-mile logistics issues in healthcare supply chains. Therefore, it is high time to explore technological applications to overcome such inadequacies. The faster speed, low maintenance cost, and absence of road dependency in unmanned aerial vehicles (UAV) have popularized them as an alternative to road delivery. Hence, it is suggested as a solution to overcome the persisting distribution inefficiencies in healthcare logistics of low-income countries. According to the case study analysis conducted on the Sri Lankan vaccine cold chain, incorporating UAVs increases truck-space utilization and reduces the time consumed, cost incurred, and carbon dioxide emission in a delivery round. Moreover, the most suitable way to cover the initial setup cost of an unmanned aerial system (UAS) is by receiving aid from international donors. The capital cost also can be covered by government investments or via service outsourcing only if the number of flights per year is increased. Moreover, a homogenous (i.e., only UAV) solution was revealed to be more beneficial than a heterogeneous (i.e., truck and UAV) solution. However, due to the lack of technology literacy and willingness to change in low-income countries, it is recommended to initially execute a heterogeneous solution and expand to a homogeneous plan in the future years. However, it was evident that for a mixed-fleet solution to be advantageous, drone characteristics play a vital role. Hence, a UAV with specifications ideal for the use case must be utilized to garner the maximum benefits. Nevertheless, it was apparent that with the right implementation plan, UAVs possess the potential to overcome the shortcomings in the healthcare logistics of low-income countries.
1 July 2022 in European Journal of Operational Research