The Group Research On Newsvendor Decision Making Based On Individual Difference

The research on traditional newsvendor problem is based on the hypothesis of“rational economic man”,which believes that individuals make decisions according to the principle of profit-maximization but not be affected by individual differences.However,some researcher recognized the limitations of the individual and put forward the theory of “bounded rationality”,believing that decision makers could not find the optimal decision plan because of the limited knowledge and ability.Moreover,more and more empirical studies also show that in uncertain conditions,individuals have an irrational ordering tendency and their actual decisions systematically deviate from the hypothesis.Among them,the anchoring effect is a kind of typical irrational behavior,most of decision-makers cannot be realized with the effect,they are influenced by information even not be relevant with the decision-making process and then make subprime decisions or bad decisions.Behavior operation management integrate the achievement of the cognitive psychology,social psychology and other disciplines with the theory of traditional operation management,tries to explain the various “vision” of the market and to study the mechanism underlying the decision-makers' irrational behavior.At the same time,decision-making in the framework of the group has become the most common way for many large enterprises to make major decisions,which can reduce the risk of individual decision-making and improve the quality of decision.Therefore,it is urgent to study the newsvendors' problem from the perspective of behavioral operation managementThis paper study the effect of group personality traits on newsboy ordering behavior through newsvendor experiment on the basis of the theory of behavioral operation management and big-five personality.Firstly,we examined whether there is irrational behavior(anchoring effect)in group ordering decision,found that there is an obvious anchoring bias even in the group order decision;Secondly,we examined the effect of the big-five personality traits on the behavioral visions in the group decision-making situation and investigated the correlation between big-five personality and the performance of the newsvendor decisions.we founnd the openness of the big-five personality can well predict the ordering behavior of individual and group decision-makers.In the individual experiment,the individual with higher openness is less likely to produce anchoring effect,and the other four personalitytraits have no significant relationship with anchor deviation.In group experiment,the average score of openness of a group,the proportion of high openness members are negatively related with the anchor deviation of newsvendor,but have no significant relationship with decision-making performance;Thirdly,comparing the two experimental results,we found that group anchoring tendency is significantly less than individual anchoring tendency,and group decision is not better than individual decision.The study can supplement the study of individual difference factor in the research of newsvendor decision-making,and the above conclusion have certain reference value in recruiting enterprise personnel,building a decision-making team and reduce decision deviation.