We analyze how performance metrics that contain the same information affect actual decisions. We consider two such metrics from inventory management, days of supply and inventory turn rate, where one is the inverse of the other. We argue that individuals tend to assess performance based on the...

The ordering behavior of human decision makers under stochastic demand has been analyzed for various supply contracts. A consistent finding is that people place orders that both deviate from expected profit-maximizing quantities and exhibit high variability. We consider service level contracts,...

In today's dynamic retail landscape, escalating costs and frequent price renegotiations pose challenges for supply chain coordination. One of the main roadblocks for coordination is that retailers often end up making less-than-optimal order decisions. These suboptimal choices not only affect...