This paper investigates the impacts of transshipment between overconfident newsvendors who perceive the expected outcome of an uncertain event as more certain than it actually is. The conventional wisdom is that transshipment is a risk-pooling strategy for improving newsvendors’ performance....

We incorporate the cry-wolf syndrome into a setting in which a manufacturer commissions a forecaster for recommendation. In this context, we define cry-wolf as a behavioral syndrome that leads the manufacturer to become less compliant with the forecaster's valuable recommendation after the...

Artificial intelligence (AI) has significantly changed the supply chain process. In this study, we study the effects associated with AI automation of the retailer’s order decision in a decentralized supply chain comprising one supplier and one regretful retailer. In the absence of AI...