Inventory optimization approaches typically optimize steady-state performance, but do not consider the transition of an initial state to the optimized state. In this study, we address this transition. Our research is motivated by a company that implemented an improved inventory policy for its...

Although algorithmic decision support is omnipresent in many managerial tasks, a lack of algorithm transparency is often stated as a barrier to successful human–machine collaboration. In this paper, we analyze the effects of algorithm transparency on the use of advice from algorithms with...

This study examines human ordering behavior in service‐level inventory contracts, a class of contracts important in practice. Studies of wholesale price contracts find that people tend to place orders that are suboptimal and biased toward mean demand. Unlike wholesale price contracts,...