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Showing posts with the label supply chain management

Decision Making as Output and Bounded Rationality

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  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra
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Is the Supply Chain Management Dead?

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  Browsing through Harvard Business Review, there is an interesting post published titled “ The Death of Supply Chain Management ”. The article makes a radical forecast. It posits the death of the supply chain within the next decade. So the question naturally would be the possible replacement of the same. It argues a smoothly running self regulating utility. Thus it becomes interesting to decode the possible radical propostion being put forth by HBR. After all, it was not too long ago, that people began talking about supply chain management as something of a buzzword. As Li and Fung had demonstrated internet was not even a sine qua non for running an effective supply chain operations. So what has changed is the question that should concern the management experts.   There is no doubt, that the company of age of globalization has the supply chain as the heart of its operations. Without doubt, the managers have to base their action on data and this data has to be real time. Furthermor
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