Cognitive Processing

**67**

**Chapter 5**

**Abstract**

The Influence of Cognitive Biases

Control: Considering the Human

Factor for the Design of Decision

Production planning and control (PPC) requires human decision-making in several process steps like production program planning, production data management, and performance measurement. Thereby, human decisions are often biased leading to an aggravation of logistic performance. Exemplary, the lead time syndrome (LTS) shows this connection. While production planners aim to improve due date reliability by updating planned lead times, the result is actually a decreasing due date reliability. In current research in the field of production logistics, the impact of cognitive biases on the decision-making process in production planning and control remains at a silent place. We aim to close this research gap by combining a systematic literature review on behavioral operation management and cognitive biases with a case study from the steel industry to show the influence of cognitive biases on human decision-making in production planning and the impact on logistic performance. The result is the definition of guidelines considering human behavior for the design of decision support systems

**Keywords:** cognitive biases, human behavior, production planning and control,

While in the area of psychology, anthropology, and sociology human behavior has been investigated intensely and although behavioral aspects became an integral part of economic research [1], in the field of logistics and production planning and control (PPC), only little research has been conducted [2]. In order to support decision-making processes in PPC and to optimize logistic performance, various models have been developed in order to reach short lead times, high due date reliability, low inventory levels, and high-capacity utilization as the key logistic performance indicators for production systems [3]. However, the underlying proposition of these models is typically the theory of the "homo

in Production Planning and

Support Systems

to improve logistic performance.

PPC, system design

**1. Introduction**

*Julia Bendul and Melanie Zahner*
