Universität zu Köln

Papier, Felix ORCID: 0000-0003-1476-6181 and Thonemann, Ulrich ORCID: 0000-0002-3507-9498 (2021). The Effect of Social Preferences on Sales and Operations Planning. Oper. Res., 69 (5). S. 1368 - 1397. CATONSVILLE: INFORMS. ISSN 0030-364X

Full text not available from this repository.

Abstract

Sales and operations planning processes are used to align production quantities and customer demand. Two key activities of these processes are demand planning and production planning, which are often assigned to individuals in different departments. Production planning requires accurate demand forecasts from demand planning to be able to choose proper production quantities, but demand planners have to invest effort to create accurate demand forecasts. We study the role of social preferences (altruism, inequality aversion, and competitive pressure) in incentivizing demand planners to invest effort, and we analyze how social preferences interact with monetary incentives. We use a game theoretic model and laboratory experiments. Our results indicate that social preferences can be used to incentivize demand planners to invest effort and that this effect is anticipated by production planners. The resulting more accurate demand forecasts and adapted production quantities result in higher company profit. We also provide an optimization model for optimally allocating investments to financial incentives and social preference building.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Papier, Felix UNSPECIFIED orcid.org/0000-0003-1476-6181 UNSPECIFIED Thonemann, Ulrich UNSPECIFIED orcid.org/0000-0002-3507-9498 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-571570
DOI:	10.1287/opre.2020.2068
Journal or Publication Title:	Oper. Res.
Volume:	69
Number:	5
Page Range:	S. 1368 - 1397
Date:	2021
Publisher:	INFORMS
Place of Publication:	CATONSVILLE
ISSN:	0030-364X
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Center of Excellence C-SEB
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language BAYESIAN EQUILIBRIUM; MONETARY INCENTIVES; SUPPLY CHAINS; INFORMATION; FAIRNESS; TRUST; PERFORMANCE; RECIPROCITY; COMPETITION; MOTIVATION Multiple languages Management; Operations Research & Management Science Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/57157