Intuitive inventory management: An experimental system

Abstract

The way people intuitively manage inventories is both an important issue in its own right and a context for research on various basic theoretical questions. The subject has not yet been systematically studied, owing partially to the lack of appropriate research tools. This paper presents some of the key concepts in formal inventory theory and describes an experimental system for the study of intuitive inventory management. This system is a computer program that allows subjects to interact with a simulated inventory system. Numerous system parameters can be manipulated, including demand functions, prices, costs, and the display of data. The usefulness of the system is demonstrated via the study of the effects of three parameters on intuitive inventory management in an illustrative experiment. Possible future uses of the system in basic and applied research and in training are indicated. © 1995 Psychonomic Society, Inc.