Unravelling ordering decision biases in multi-echelon supply chain: development of the theoretical framework

Purpose Decision-makers’ behavioural tendencies and biases in an uncertain environment can impact inventory dynamics across the supply chain. This study investigates how human biases influence inventory ordering behaviour, particularly in selecting order quantities, shaping inventory dynamics across the supply chain. Design/methodology/approach Grounded in attribution theory from social psychology, this study employs a systematic literature review (SLR) of peer-reviewed academic papers published between 2002 and 2024 in top-tier journals. It uses an inductive theory-building SLR for the development of the theoretical framework. Findings Developed theoretical framework explains how decision-makers exhibit biases in inventory ordering decisions. The findings highlight the role of individual-level psychological antecedents as causal drivers of ordering-decision biases and contextual factors as moderators shaping the extent to which such biases result in overordering or underordering. Research limitations/implications The developed theoretical framework provides a foundation for future research on behavioural biases in inventory ordering under various decision contexts in supply chains. Originality/value It advances research in inventory decision-making by addressing a key gap in understanding how ordering decision biases develop at the level of the decision-maker.