EURO 2024 Copenhagen
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1669. A Behavioural Investigation of Feasibility and Demand Uncertainty in Production Planning Systems

Invited abstract in session MB-11: Behavioral Decision Analysis I, stream Behavioural OR.

Monday, 10:30-12:00
Room: 12 (building: 116)

Authors (first author is the speaker)

1. Maryam Azani
OPAC, Technical university of Eindhoven
2. Lijia Tan
IE&IS, Eindhoven University of Technology
3. Rob Basten
School of Industrial Engineering, Eindhoven University of Technology
4. Ton de Kok
School of IE, TUE

Abstract

Production planning systems are an integral component in human planners’ decisions and, ultimately, joint human-system performance. Although analytically superior systems are known to generate better suggestions, it remains unclear how human planners react to the suggestions and, thus, whether the resulting joint performance is enhanced when using these systems. We examine the impact of different system suggestions on joint performance in a rolling horizon setting with two products and three components under demand uncertainty. We test this in a laboratory environment. We compare human planners’ judgemental adjustments and joint performance using system suggestions with different analytical performance (control, Material Requirement Planning, Synchronized Base Stock). We understand that human planners’ deluded self-confidence and a desire for control over the system result in adjusting system suggestions regardless of the analytical superiority of the system, which constantly degrades performance. This effect is stronger for systems with superior analytical performance. Additionally, we understand that human planners’ judgemental adjustment patterns are different across three systems. We replicate these findings in a field experiment with actual planners.

Keywords

Status: accepted

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