The Influence of Cognitive Biases in Production Logistics

Abstract

AbstractDigitalization and the transformation of industry into Industry 4.0 is changing the character of production logistics substantially. New Logistics 4.0 technologies are largely enabling automated decision-making by machines. Human decisions are nevertheless still required. Research shows, however, that human decisions are often more biased and less rational than most logistics models assume. Decision makers and decision support system designers therefore need to understand the influence of the so-called cognitive biases on the human decision-making process. We contribute to the scholarship on this issue by combining the literature streams of logistics and cognitive biases. We demonstrate the influence of cognitive biases on human decision-making based on typical decisions in logistics and derive initial hypotheses.