Decision Theory (DT) Concepts In Sustainable Supply Chain Management
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PURPOSE OF RESEARCH
In this article research is examined just to know the use of decision theory (DT) concepts in sustainable supply chain management (SSCM), that how decision theory is playing a vital role to sustain the supply chain management.
This research was conducted to seek the answer of the specific question that “How decision-making is involved in academic research on sustainable supply chain management?”
This article “Decision theory in sustainable supply chain management” has been taking from the Journal – Supply Chain Management: An International Journal Volume 19, Issue 5/6, written by Anthony Alexander, Helen Walker and Mohamed Naim in the year 2014.
The purpose of this article is to know or set the believe about…show more content… It relates many concepts in sustainable supply chain management (SSCM), such as decision theory (DT) concept, organizational culture, risk management, transparency & strategy. It objectives help to formulate rule and regulation in challenges to successful sustainable supply chain management (SSCM). The logical and mathematical concepts are categorized into three class of decision theory under certainty, under conflict & under uncertainty. The basic responsibility for decision making with individual & group base authority. In the challenges of successful sustainable supply chain management (SSCM), uncertainty, complexity, operationalization, cost and mind sets and cultural are included. Our research article have faced two problems, structured and unstructured. Further Qualitative Approach are used in this article to finding out people opinions, issues, motivations and problems through group discussion and face to face interviews. Around 60% of the papers on decision making in sustainable supply chain management (SSCM) come from operational research (OR) which makes explicit use of decision theory (DT). Around 16% comes from business ethics and are empirical behavioral decision research…show more content… The objective is to help managers in formulating rules and regulations, that may lead to a most advantageous course of action under the given circumstances. Inter-firm decision-making processes are important because collaboration is a key driver for making best decision.
Decision theory (DT) is classified decisions into three classes, which are as follown:
• Decisions under Certainty – A manager has extensive knowledge to choose the best alternative decision.
• Decisions under Conflict – A manager has to take more flexible decision moves and counter moves of one or more competitors.
• Decisions under Uncertainty – A manager has an ability to dig a lot of data to make sense of what is going on and what it is leading to.
Responsibility for making a decision must remain with the individual or group holding authority.
Decision Theory is directly related to many concepts which are mentioned in sustainable supply chain management research. Organizational culture, strategy, risk management and transparency, all are the requirements for successful SSCM, they all affect the nature of decision-making. Meanwhile, uncertainty, complexity, operationalization, cost and mindset, and cultural change , all are included in challenges to successful